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Attached to the notice for the taxable years 1987 and 1988 was,
inter alia, Form 886-A, EXPLANATION OF ITEMS (Form 886-A), which
provided in pertinent part as follows:
INTEREST INCOME - MONSOUR FAMILY INVESTMENTS
It is determined that you understated your taxable
interest income received from Monsour Family Invest-
ments by $12,334.00 and $10,014.00 for the years ending
December 31, 1987 and December 31, 1988, respectively.
Therefore, your taxable income is increased $12,334.00
for 1987 and $10,014.00 for 1988.
LOSS - 3 CROWNS HOTEL
Expenses incurred in connection with 3 Crowns
Hotel were not for an activity entered into for profit.
Therefore, the $126,632.00 shown on your return for
1987 and the $136,461.00 shown on your return for 1988
as deductions are not allowable under Section 183 of
the Internal Revenue Code and your taxable income is
increased accordingly.
TAXES - SCHEDULE A
INTEREST EXPENSE - SCHEDULE A
The taxes and interest expense deducted on Sched-
ule C for 3 Crowns Hotel are allowable as itemized
deductions on Schedule A. Your taxable income for 1987
is, therefore, decreased by $13,319.00 for taxes and
$65,624.00 for interest. Your taxable income for 1988
is decreased by $12,791 for taxes and by $55,328.00 for
interest.
PREVIOUSLY AGREED ADJUSTMENTS
You signed an agreement on April 8, 1992 consent-
ing to the following adjustments:
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Last modified: May 25, 2011