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petitioner establish his basis in the commodity futures reported
in 1978.
Petitioner presented no evidence, such as canceled checks,
brokerage statements, or sale agreements, to support the capital
losses claimed in 1978 and 1979. Therefore, his taxable income
should be increased by $3,000 in 1978 and $10,500 in 1975.
VII. Asserted Claim of Right for 1979
When petitioner sold his Diesel Power stock to the
Khalatbaris in 1977, the sale price was $4,890,000 plus 40
percent of certain additional commission income. By March 1978
petitioner had received $3,925,000 for the stock sale. On his
1977 income tax return petitioner reported his gross sale price
for the Diesel Power stock as $4,809,389, or $806,111 less than
the cash sale price, excluding the potential additional
commission income.
In 1975 and, thus, prior to petitioner's sale of the Diesel
Power stock, the following events occurred: Clark canceled its
distribution agreement with Diesel Power; Ingersoll-Rand canceled
its agreement with Diesel Power; all commission agreements with
Lockheed were canceled; and the Ashland agreement for crude oil
purchases, joint refining ventures and exploration was
terminated.
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