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781, 795 (11th Cir. 1984)). To make an election, “the taxpayer
must exhibit in some manner * * * his unequivocal agreement to
accept both the benefits and burdens of the tax treatment
afforded” by the governing statute. Kosonen v. Commissioner,
supra (quoting Young v. Commissioner, 83 T.C. 831, 839 (1984),
affd. 783 F.2d 1201 (5th Cir. 1986)). “A taxpayer has not made
an election if it is not clear from the return that an election
has been made.” Id.
Conclusion
On the basis of the record, it is not clear from any of
petitioners’ relevant returns that petitioner made an election
under section 469(c)(7)(A). Petitioners’ consistent treatment of
aggregating the rental income and expenses on their Schedules E
is not a deemed election to treat the rental real estate
activities as a single activity under the requirements of section
469(c)(7)(A). Accordingly, petitioner did not elect to treat his
rental real estate activities as a single activity under section
469(c)(7)(A). Respondent’s determination is therefore sustained.
Although petitioner does not qualify as a real estate
professional, respondent allowed petitioners to deduct $25,000
for each of the taxable years in issue pursuant to the $25,000
offset for rental real estate activities under section 469(i).
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