Krukowski v. Commissioner
United States Tax Court
P was the sole shareholder of two C corporations. One corporation operated a health club; the other operated a law firm for which P worked as an attorney. P realized a loss renting a building to the health club, and he realized income renting a building to the law firm. P's 1994 Federal income tax return reported that the loss and income were both "passive" under sec. 469, I.R.C., and that the loss offset part of the income.
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P was the sole shareholder of two C corporations. One corporation operated a health club; the other operated a law firm for which P worked as an attorney. P realized a loss renting a building to the health club, and he realized income renting a building to the law firm. P's 1994 Federal income tax return reported that the loss and income were both "passive" under sec. 469, I.R.C., and that the loss offset part of the income. R disallowed the offset because, R determined, the recharacterization rule of sec. 1.469-2(f)(6), Income Tax Regs., deemed the income nonpassive. HELD: The…
1Opinion of the Court
OPINION
Laro, Judge:
This case is before the Court on cross-motions for summary judgment. Respondent determined a $28,184 deficiency in petitioner’s 1994 Federal income tax and a $5,637 accuracy-related penalty under section 6662(a). Petitioner, while residing in Greendale, Wisconsin, petitioned the Court to redetermine respondent’s determination.
Following respondent’s concession that petitioner is not liable for the accuracy-related penalty, we must decide whether petitioner may offset the income and loss that he realized on his separate rental activities.1 We hold he may not. Unless otherwise…
2Cases cited17 opinions
- Anderson v. Liberty Lobby, Inc.Supreme Court of the United States · 1986
- Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc.Supreme Court of the United States · 1984
- United States National Bank v. Independent Insurance Agents of America, Inc.Supreme Court of the United States · 1993
- Crane v. CommissionerSupreme Court of the United States · 1947
- Keppel v. Tiffin Savings BankSupreme Court of the United States · 1905
12 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Sidell v. CommissionerCourt of Appeals for the First Circuit · 2000
- Carlos v. Comm'rUnited States Tax Court · 2004
- Adeyemo v. Comm'rUnited States Tax Court · 2014
- Dirico v. Comm'rUnited States Tax Court · 2012
- Willock v. Comm'rUnited States Tax Court · 2010
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