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deduction is carried forward and deductible in succeeding taxable
years to the extent of net investment income in those years.3
Decision will be entered
for respondent.
3 On their income tax return for 1999, petitioners also
reported Schedule E income of $17,569 from two sources, the
rental of a commercial building and an apartment partnership.
Although petitioners, in their petition and at trial, did not
allege or claim the $17,569 to be net investment income, the
Court, nevertheless, after trial, ordered the parties to address
this income item since, under sec. 163(d)(4)(B), "investment
income", in part, includes gross income from "property held for
investment", subject, however, to limitations under sec.
163(d)(5)(A)(ii). Based on the reports filed by the parties, the
Court is not satisfied that the $17,569 in income is outside the
realm of the limitations of sec. 163(d)(5)(A)(ii).
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Last modified: May 25, 2011