Beverly Gordon - Page 37

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          the Code.  See Automobile Club of Mich. v. Commissioner, 353 U.S.           
          180, 183 (1957).                                                            
               Nor has Mr. Gordon established that he relied to his detri-            
          ment on the IRS revenue agent's oral statement to him in October            
          1988 and the IRS' issuance of the no-change letter in May 1989 by           
          arranging his business affairs so that any income that he re-               
          ceived during 1988 and subsequent years would constitute ordinary           
          income that could be offset by a net operating loss deduction               
          attributable to his 1986 net trading loss.  In this connection,             
          we find it significant that (1) although Mr. Gordon's employment            
          with MKI from which he received ordinary income during 1988                 
          commenced sometime in January 1988, it was not until October 1988           
          that the IRS revenue agent told him that his 1986 net trading               
          loss was properly reported as an ordinary loss in the Gordons'              
          1986 return, and it was not until May 1989 that the IRS issued              
          the no-change letter to the Gordons; and (2) the Gordons did not            
          claim any net operating loss deductions in their 1989 and 1990              
          returns.                                                                    
               We also reject Mr. Gordon's claim that he relied to his det-           
          riment on the IRS revenue agent's oral statement to him in                  
          October 1988 and the IRS' issuance of the no-change letter in May           
          1989 when he and Ms. Gordon did not use his 1986 net trading loss           
          to offset the long-term capital gain that they realized from the            
          sale of their Roslyn residence.  The Gordons realized a gain from           






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