Robert G. Leslie and Marilyn B. Leslie - Page 29

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          tax losses and be in a better position to later profit from the             
          market movement.  Petitioner's modifications resulted in a                  
          $1,506,000 loss just before the end of the 1980 tax year.                   
               Petitioner argues that "the mere fact that tax benefits were           
          realized does not mean the tax benefits were the reason for the             
          transaction."  However, "It is a fundamental legal maxim that the           
          consequences of one's acts are presumed to be intended."  Fox v.            
          Commissioner, 82 T.C. at 1022.  We find that petitioner, like the           
          taxpayers in Ewing, "chose to 'cancel' the initial losing legs of           
          his straddles before the close of the 1980 tax year so as to                
          generate an ordinary loss."  Ewing v. Commissioner, 91 T.C. at              
          419.  Then, in the following year, on December 31, 1981, peti-              
          tioner chose to assign the profitable legs of his straddles which           
          resulted in a $152,380 long-term capital gain.                              
               Thus, with an initial investment of only $178,500, peti-               
          tioner attempted to offset $1,449,151 of his net 1980 ordinary              
          income5 with his $1,506,000 tax loss from the December 10, 1980,            
          cancellation of his gold futures transactions, and, by closing              
          out the profitable legs of his straddle positions on December 31,           
          1981, by means of assignments, petitioner attempted not only to             
          defer his straddle gains to 1981 but also to convert ordinary               
          income into 1981 long-term capital gain.                                    

          5Petitioner was also able to offset capital gains (after                    
          such capital gains had already been reduced by the 60-percent               
          long-term capital gain exclusion) by the amount of $56,849.                 

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