- 27 -
Mr. Gordon was not financially capable of making any such pay-
ments.
In July 1993, the Gordons executed an amendment to the
separation agreement under which they agreed, inter alia, that
any "tax liabilities that may be assessed" against them in
connection with their joint tax liabilities shall be "the sole
and absolute responsibility" of Mr. Gordon.
After the Gordons separated, Ms. Gordon was responsible for
and paid the mortgage loan on the Lincoln Plaza residence and all
her own living expenses. The sources of those payments were Ms.
Gordon's salary, the dividends on stocks that she owned, and the
proceeds from the sale of some of her assets.
OPINION
Petitioners bear the burden of proving that respondent's
determinations in the notice are erroneous. Rule 142(a); Welch
v. Helvering, 290 U.S. 111, 115 (1933).
The Claimed 1988 NOL Deduction
Section 1256
During 1986, Mr. Gordon sustained a net loss of $319,973
from trading options on the AMEX as an options market maker.10
10 The parties agree that the amount of Mr. Gordon's 1986 net
trading loss that is in question is $319,973 and that that
trading loss does not include the expenses of $4,750 that the
Gordons reported in Schedule C of their 1986 return as having
been incurred in connection with Mr. Gordon's trading activity
during that year.
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