Charles A. Ballard - Page 21

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          is not attributable to a tax shelter within the meaning of                  
          section 6661(b)(2)(C)(ii).                                                  
               Petitioner does not claim that adequate disclosure for                 
          purposes of section 6661 was made on his or Ballard Marine’s                
          return, and, consequently, we do not address that issue.                    
               Petitioner does claim that substantial authority supports              
          his position with regard to the losses from Ballard Marine                  
          disallowed under section 183 (the section 183 losses).  We must             
          decide whether petitioner’s deduction of the section 183 losses             
          is supported by substantial authority.  In evaluating whether a             
          taxpayer’s position regarding treatment of a particular item is             
          supported by substantial authority, the weight of authorities in            
          support of the taxpayer’s position must be substantial in                   
          relation to the weight of authorities supporting contrary                   
          positions.  Sec. 1.6661-3(b)(1), Income Tax Regs.  An authority             
          that is materially distinguishable on its facts generally will              
          have little or no relevance in determining whether substantial              
          authority supports the tax treatment at issue.  Antonides v.                
          Commissioner, 91 T.C. at 702-704; sec. 1.6661-3(b), Income Tax              
          Regs.  Petitioner sets forth five cases as substantial authority:           
          Feldman v. Commissioner, T.C. Memo. 1988-126; Slawek v.                     
          Commissioner, T.C. Memo. 1987-438; Zwicky v. Commissioner, T.C.             
          Memo. 1984-471; Dickson v. Commissioner, T.C. Memo. 1983-723;               
          McLarney v. Commissioner, T.C. Memo. 1982-461.  All of those                
          cases involve a boat chartering activity and our decision that              

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