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On his 2000 Schedule E, petitioner claimed deductions
pertaining to the Adams and Persimmon rental properties of
$25,616.92 and $38,213.00, respectively. Respondent determined
that petitioner qualifies for a $25,000 loss for active
participation in his rental real estate activity in each of the
years in issue. Respondent disallowed loss deductions in excess
of that amount.
2. Petitioner's Employee Business Expenses
During the years in issue, petitioner was employed as a
computer analyst by Wells Fargo Bank (Wells Fargo), his employer
of more than 20 years. At the beginning of 1999, petitioner was
working in Tempe, Arizona. In June 1999 petitioner's job was
relocated from Arizona to Sacramento, California. At that time,
petitioner rented an apartment in Sacramento.
During one of the weekly trips he made from California to
the Adams house to perform maintenance, petitioner retrieved from
the Adams house computer manuals he needed for his job. He was
not required by Wells Fargo to drive down and pick up the
manuals. Petitioner did it for his own convenience. He did not
keep records of the mileage he drove.
On his 1999 Schedule A, petitioner deducted his mileage
expenses for trips to the Adams house as an employee business
expense, claiming a total deduction of $13,392.00, less the 2-
percent AGI floor of $1,360.87, or $12,031.13. On his 2000
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