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and (4) the notices of deficiency were mailed within one year
thereafter, on June 23, 1995.
At-Risk
We must now decide whether decedent was at risk for his
assumed liability in the context of the sale-leaseback
transactions. Because respondent first raised the at-risk issue
in the answer, respondent bears the burden of proof, and so
concedes on brief.
Section 465(a) provides that deductions with respect to the
type of leasing activity represented by this case are only
allowable to the extent of the amount for which the taxpayer is
at risk. Generally, a taxpayer will, subject to the exception in
section 465(b)(4), discussed below, be considered at risk for the
amount of any cash investment. Sec. 465(b)(1)(A). Also, a
taxpayer will be considered at risk for the amounts borrowed with
respect to the activity, to the extent that the taxpayer is
personally liable for the repayment of such amounts. Sec.
465(b)(2)(A).
Respondent concedes that the partnership's transaction had a
business purpose with economic substance, was engaged in for
profit, and that the partnership's equipment was correctly
8(...continued)
Frontenac, Inc. v. United States, 868 F.2d 420 (11th Cir. 1989);
Security Indus. Ins. Co. v. United States, 830 F.2d 581 (5th Cir.
1987) (all cited in Ripley v. Commissioner, 105 T.C. 358, 362
(1995), revd. on other grounds 103 F.3d 332 (4th Cir. 1996)).
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