A recent Tax Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.
The Tax Court, sustaining late-filing and accuracy-related penalties, held that an individual wasn’t a real estate professional and losses from his rental activity were subject to the passive activity limitations of section 469, finding that he failed to show that he spent more time on his rental activity than on other income-producing activities.
GUILLERMO MERINO, JR., AND LISA MERINO,
Petitioners
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent