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The expenses consisted of automobile expenses, legal and
professional services, office expense, rent, repairs and
maintenance, supplies, travel, and other expenses. Petitioner
attached no documentation to his revised Form 1040 to support the
amounts claimed for returns or allowances, cost of goods sold,
and expenses.
On Schedule E, petitioner identified three rental real
estate properties in Alabama: (1) 5515 Yellow Wood Ave.,
Birmingham; (2) 313 Cordova Drive, Dothan; and (3) 3312 Cathy Lou
Road, Dothan. Schedule E reflected in relevant part as follows:
Property Rents ReceivedExpenses Depreciation Total Expenses Losses
Yellow Wood $2,380 $1,836 $4,488 $6,324 ($3,944)
Cordova 3,960 4,222 3,599 7,821 ( 3,861)
Cathy Lou 2,772 8,014 2,712 10,726 ( 7,954)
Total 9,112 14,072 10,799 [1](12,500)
[1] Petitioner claimed “deductible” rental real estate losses of $3,128, $3,063, and
$6,309 for Yellow Wood, Cordova, and Cathy Lou, respectively. See sec. 469; see
also Form 8582, Passive Activity Loss Limitations.
The expenses consisted of cleaning and maintenance, commissions,
insurance, legal and professional fees, management fees, mortgage
interest, supplies, and taxes. Petitioner attached no
documentation to his revised Form 1040 to support the claimed
amounts for expenses and depreciation.
After receipt of petitioner’s revised Form 1040, respondent
requested from petitioner any supporting documentation concerning
petitioner’s claimed deductions. Petitioner did not provide any
supporting documentation to respondent.
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Last modified: May 25, 2011