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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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