Leonard L. Leighton and Joyce S. Leighton - Page 8

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          he maintained for his coventurers, and he also admitted that he             
          took some of such funds for his personal uses.  He totally failed           
          to show the extent, if any, where respondent was in error as to             
          her determination of additional unreported income.                          
               (2) As to the additional unreported capital gains for 1987,            
          respondent admitted that some cost basis had been allocated to              
          petitioner in her computation of the capital gains.  There is no            
          evidence in this record, and petitioner has produced none, that             
          petitioners had any cost basis in excess of that allowed by                 
          respondent which would reduce the net capital gains in any of the           
          recomputations that respondent made.  Sec. 1012.  In fact, to the           
          extent that any of the testimony at trial herein or any of the              
          exhibits admitted into evidence touched upon it at all, it was              
          strongly suggested that petitioner had no cost basis in the                 
          various ventures in any amount.                                             
               (3) As to the additional capital losses claimed by                     
          petitioners as an offset, and more, to the capital gains                    
          determined by respondent, petitioner has produced no evidence of            
          any amounts of loss, but instead has relied on a general argument           
          that the judgments rendered against him, as well as the                     
          abandonment of various projects by the joint ventures, produced             
          capital losses which he could deduct.  Quite aside from                     
          petitioner's failure to prove any cost basis in any of these                
          ventures, as we have mentioned above, it does not appear that any           
          of the judgments which petitioner admits were rendered against              




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