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By way of background, petitioners claimed but, in
substantial part, did not use a $327,600 net short-term capital
loss on their 1980 joint income tax return. Accordingly,
petitioners claimed a $322,340 short-term capital loss carryover
from the 1980 tax year on their 1983 tax return. Respondent, in
the statutory notice of deficiency for 1983, allowed $55,803 of
this loss carryover. The balance of the loss was allowed for the
1980 taxable year pursuant to an audit examination of the 1980
tax year. In Friedman v. Commissioner, T.C. Memo. 1993-549, we
held:
With respect to the capital loss carryover, at the
time petitioners filed their 1983 return, the 1980
return had not been audited. Therefore, when the 1983
return was filed with the capital loss carryover,
petitioners did not know that the carryover duplicated
losses [subsequently] allowed in 1980. The later
disallowance was purely mechanical and a natural result
of an adjustment to a prior year's return. The
deduction was not frivolous or fraudulent. Therefore,
the deduction had a basis in fact or law and the
deduction is not grossly erroneous.
Under Rule 155, parties are required to submit "computations
pursuant to the Court's determination of the issues, showing the
correct amount of the deficiency * * * to be entered as the
decision." Parties are not permitted to raise new issues or
matters in connection with the Rule 155 computations. Bankers
Pocahontas Coal Co. v. Burnet, 287 U.S. 308 (1932). The starting
point for the computation is the statutory notice of deficiency
from which the parties compute the redetermined deficiency based
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