- 4 - bills, electric bills, and other living expenses. After trial, the record was reopened and petitioner submitted a document showing real estate tax expenses of $1,920.16 and mortgage interest expense of $215.77. We find that petitioner did not prove that any of the claimed Schedule A deductions pertaining to his co-op were attributable to the management of his rental property. Unfortunately for petitioner, his personal expenses incurred in connection with his co-op, where he resided, are nondeductible personal living expenses. Sec. 262(a). We do not address the restrictions under section 280A because this section was not raised at trial. Petitioner would be well advised to consult a United States tax expert before filing future nonresident returns. On this record, we have no choice but to conclude that petitioner has not established his entitlement to the claimed Schedule A deductions. Accordingly, we sustain respondent’s determination on this issue. Section 6651(a)(1) imposes an addition to tax for failure to timely file a tax return, unless the taxpayer established that failure to do so is due to reasonable cause and not willful neglect. The taxpayer must prove both reasonable cause and lack of willful neglect. Crocker v. Commissioner, 92 T.C. 899, 912 (1989). “Reasonable cause” requires the taxpayer to demonstratePage: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011