28 May 1990 T.I. (October 1990 Access Letter, ¶1446)

A loss from a rental operation carried on without a reasonable expectation of profit is not an investment expense.

Where as a result of a temporary move to another city, an employee rents out his house at a rent which is less than the expenses of maintaining the property, the taxpayer will not be entitled to claim a rental loss assuming that there is no reasonable expectation that the rental operation will show a profit after expenses.

Where as a result of a temporary move to another city, an employee rents out his house at a rent which is less than the expenses of maintaining the property, the taxpayer will not be entitled to claim a rental loss assuming that there is no reasonable expectation that the rental operation will show a profit after expenses.