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deductions attributable to such respective rents, are subject to
self-employment tax for the respective years at issue because
they constitute net earnings from self-employment under section
1402(a)(1).
OPINION
Petitioners bear the burden of proving that the determina-
tions in the notice that remain at issue are erroneous.11 See
Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).
The ultimate dispute between the parties that we must
resolve is whether the 1993 claimed rent, the 1994 claimed rent,
and the modified 1995 claimed rent, reduced by the deductions
attributable to such respective rents, are subject to self-
employment tax because they constitute net earnings from self-
employment under section 1402(a)(1).
As applicable here, section 1402(a)(l) defines the term “net
earnings from self-employment” to mean
the gross income derived by an individual from any
trade or business carried on by such individual, less
the deductions allowed by this subtitle which are
attributable to such trade or business * * * except
that in computing such gross income and deductions
* * *--
(1) there shall be excluded rentals from real
11Sec. 7491(a) is not applicable in the instant case. That
is because respondent issued the notice to petitioners on Jan.
22, 1998, and a fortiori the examination of the years at issue
would have commenced before July 23, 1998. See Internal Revenue
Service Restructuring and Reform Act of 1998, Pub. L. 105-206,
sec. 3001(c), 112 Stat. 727.
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