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
OPINION
Wells, Judge:
Respondent determined deficiencies in petitioners’ Federal income taxes for 1999 and 2000 as follows: 1
Year Deficiency
$17,011 M CO CO co
114,443 to O O o
The issue to be decided is whether losses from petitioners’ rental activity constitute passive activity losses pursuant to section 469.2
Background
The parties have submitted the instant case fully stipulated, without trial, pursuant to Rule 122. The parties’ stipulations of fact are incorporated herein by reference and are found as facts in the instant case.
Petitioners are husband and wife. At the time of filing their…
2Cases cited8 opinions
- Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc.Supreme Court of the United States · 1984
- Corson v. CommissionerUnited States Tax Court · 2000
- 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
3 more not listed; retrieve them via the Exa API.
3Cited by13 opinions
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- Dirico v. Comm'rUnited States Tax Court · 2012
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