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argue that they had a $33,809 ordinary loss and a $13,278 capital
loss in 1987 from their investment in Americana. In the
alternative, they argue that they had a $47,087 capital loss in
1987.
Gain or loss upon the disposition of an asset is computed by
comparing the amount received with the taxpayer's basis in the
asset. Secs. 1001, 1011. Petitioners failed to prove their
basis in Americana. Petitioners contend that their total
investment in Americana was $50,702 ($9,800 that petitioner
husband deposited in Americana's account, plus $5,000 paid for
capital stock, $500 loaned to Americana, and $35,402 for amounts
petitioner husband paid the Mazzolas), minus $3,615 credited by
respondent for petitioners' basis in Americana, for a net
investment of $47,087. There is no evidence to support
petitioners' position, e.g., no canceled checks. Their only
evidence of their investment in the corporation was a listing of
$5,000 in capital stock, and loans from stockholders of $499.71
on Americana's 1986 return and $459.99 on its 1987 return. This
evidence is not sufficient to substantiate their basis in
Americana. Cf. Wilkinson v. Commissioner, 71 T.C. 633, 639
(1979); Halle v. Commissioner, 7 T.C. 245, 249-250 (1946), affd.
175 F.2d 500 (2d Cir. 1949).
Petitioners claim that they may deduct business interest of
$2,660 for payments to the Mazzolas, and Americana's net
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