A. Remy Fransen, Jr., and Eugenie B. Fransen v. United States

PATRICK E. HIGGINBOTHAM, Circuit Judge:

Today we examine the validity of Treasury Regulation § 1.469 — 2(f)(6). A. Remy Fransen, Jr. and Eugenie B. Fransen appeal the district court’s judgment upholding the regulation as a valid interpretation of Internal Revenue Code § 469 and as applied to them. We AFFIRM.

I

The essential facts are not disputed. During the 1995 tax year, the Fransens, a married couple, owned an undivided one-half interest in a building. The Fransens leased that building to a single tenant, Fransen & Hardin, a law firm organized as a “C” corporation. Mr. Fransen was the sole…