Carlos v. Comm'r
United States Tax Court
Ps owned and actively engaged in the conduct of two S corporations, B and J. B rented real property BB from Ps, and J rented real property JJ from Ps. Ps grouped the two rentals together to make up a single passive "activity" for purposes of sec. 469, I.R.C. B paid its rent on BB according to its lease with Ps, resulting in income to Ps. J did not pay its rent on JJ under its lease with Ps, resulting in a loss to Ps.
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Ps owned and actively engaged in the conduct of two S corporations, B and J. B rented real property BB from Ps, and J rented real property JJ from Ps. Ps grouped the two rentals together to make up a single passive "activity" for purposes of sec. 469, I.R.C. B paid its rent on BB according to its lease with Ps, resulting in income to Ps. J did not pay its rent on JJ under its lease with Ps, resulting in a loss to Ps. Ps netted the income and loss from the two rentals, claiming nonpassive net rental income. R, however, determined that the income and loss items could not be netted, that the…
1Opinion of the Court
TONY R. CARLOS AND JUDITH D. CARLOS, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Carlos v. Comm'r
No. 5512-03
United States Tax Court
123 T.C. 275; 2004 U.S. Tax Ct. LEXIS 43; 123 T.C. No. 16;
September 20, 2004, Filed
Judgment entered for respondent with respect to deficiencies. Judgment entered for petitioners with respect to accuracy-related penalties.
Ps owned and actively engaged in the conduct of two S
corporations, B and J. B rented real property BB from Ps, and J
rented real property JJ from Ps. Ps grouped the two rentals
together to make up a single passive "activity" for
purpose…
2Cases cited8 opinions
- Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc.Supreme Court of the United States · 1984
- Schwalbach v. CommissionerUnited States Tax Court · 1998
- Sidell v. CommissionerCourt of Appeals for the First Circuit · 2000
- A. Remy Fransen, Jr., and Eugenie B. Fransen v. United StatesCourt of Appeals for the Fifth Circuit · 1999
- Thomas P. Krukowski and Ermina A. Krukowski v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 2002
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