X hits on this document

88 views

0 shares

0 downloads

0 comments

35 / 38

  • -

    35 -

    • VI.

      Schedule E Rental Expenses for 1994.

Petitioner documented taxes of $2,526 on the New Jersey

house, which respondent allowed as a rental expense deduction on

Schedule

E.

Respondent

determined

that

$13,997

of

expenses

for

depreciation, repairs, and other expenses disallowed for 1994 as

deductions on property management Schedule C were deductible in

1994 on Schedule E as expenses related to the rental of the New

Jersey

house.

Aside

from

his

claim

that

these

items

were

trade

or business expenses deductible on Schedules C for the business

dealing in real estate, petitioner does not challenge these

adjustments.

We

have

found

that

petitioner

and

Mrs.

Wood

are

not

dealers in real estate, and, therefore, we sustain respondent on

this issue.

VII. Self-Employment Tax and Net Operating Loss Carryovers

Respondent determined that petitioner was liable for self-

employment tax of $5,902 in 1994, $3,102 in 1995, and $3,626 in

1996 on the net profit from his consulting business and allowed

petitioner a deduction for half of those taxes ($2,951 in 1994,

$1,551 in 1995, and $1,813 in 1996).

Respondent also allowed petitioner a net operating loss

carryover of $18,520 to 1994 from the examination of earlier

years but, on the basis of the adjustments made to 1995,

disallowed the net operating loss carryover of $36,389 petitioner

claimed on the 1996 return.

Document info
Document views88
Page views88
Page last viewedWed Dec 07 09:37:57 UTC 2016
Pages38
Paragraphs2521
Words8171

Comments