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his 1981 Schedule C. Petitioner admitted that these losses
related to an alleged diamond mining venture; that he did not own
any diamond mining rights; and that he knew he did not own any
diamond mining rights and was not entitled to any mining losses
for the years 1977-81. We find no genuine issue of material fact
on this issue. We shall grant respondent's motion for partial
summary judgment with respect to a finding that petitioner is not
entitled to deduct mining losses in the amount of $10 million for
each of the years 1977 through 1980, and in the amount of
$100,000 for 1981.
Net Operating Loss Carryovers
In the notices of deficiency, respondent disallowed net
operating losses claimed by petitioner in the years 1976 through
1981 that purportedly arose from his interests in the Imperial
Finance Tax Shelter Project (Imperial Finance), the S-J
partnerships, the Real Estate partnerships, and his purported
Schedule C mining activities. In his reply to respondent's
answer, petitioner admitted that he has carried forward some of
these losses.
Petitioner admitted that the S-J partnerships' economic
function was to create tax losses, that they lacked economic
substance and had no business purpose, and that he is not
entitled to the loss resulting from the flow through of any
advance royalty "payment" by the S-J partnerships. In the
stipulation of settled issues, petitioner conceded that he is not
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