Faramarz and Mitra Elghanian - Page 16

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          B.   Whether Petitioner Was a Resident of the United States in              
               1979                                                                   
               1.   Background                                                        
               The parties dispute whether petitioner was a resident of the           
          United States in 1979.11  If petitioner was not a U.S. resident             
          in 1979, then petitioners may not deduct the expropriation losses           
          in 1979, or carry those losses forward to later years during                
          which he was a U.S. resident.                                               
               An alien is a resident of the United States if he or she is            
          present in the United States and is not a mere transient or                 
          sojourner, the determination of which depends on the intended               
          length and nature of the stay.  Sec. 1.871-2(b), Income Tax Regs.           
          The fundamental issue in determining residence is whether the               
          alien intends to make the United States his or her home.  Dawson            
          v. Commissioner, 59 T.C. 264, 268 (1972).  An alien who lives in            
          the United States and has no definite intention as to his or her            
          stay is a resident for purposes of the income tax.  Id. at 268              
          n.3.                                                                        




               10(...continued)                                                       
          Sec. 7491(a).  Petitioners do not contend that sec. 7491(a)                 
          applies.                                                                    
               11 In deciding petitioner’s residence for 1979, we consider            
          the law then in effect.  Sec. 7701(b) was enacted in 1984                   
          effective for taxable years beginning after Dec. 31, 1984.                  
          Deficit Reduction Act of 1984, Pub. L. 98-369, sec. 138, 98 Stat.           
          672.                                                                        





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