Sharon M. Rivera and Richard C. Rivera - Page 10

                                        - 9 -                                         
          that petitioners had abandoned holding the property for profit              
          from rentals during the years at issue.                                     
               The term "profit", however, encompasses the appreciation in            
          the value of the assets used in the activity.  Sec. 1.183-                  
          2(b)(4), Income Tax Regs.  The term "income" as it is used in               
          section 212 "is not confined to recurring income" but may also              
          apply to gains from the disposition of property.  Sec. 1.212-               
          1(b), Income Tax Regs.  The term "income" means not merely income           
          of the taxable year but includes income the taxpayer "may realize           
          in subsequent taxable years".  Id.                                          
               When the returns at issue were filed, petitioners had held             
          their property in Truckee, located near the Lake Tahoe ski and              
          vacation area, for 9 or 10 years.  Petitioners' personal use of             
          the property in 2000 was de minimis.  The Court also credits the            
          testimony of petitioner, Sharon Rivera, that she and her husband            
          purchased the property with the expectation that it would                   
          increase in value and that it had, in fact, substantially                   
          increased in value while they owned it.                                     
               The Court finds that petitioners held the property in                  
          Truckee primarily for investment purposes and are therefore                 












Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011