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The issues for decision are: (1) Whether petitioner was a
"dealer", a "trader", or an "investor" with respect to losses he
sustained in buying and selling stock during 1987, 1988, and
1989;1 (2) alternatively, whether losses petitioner sustained in
1987 from the sale of stock to satisfy a margin call requirement
are deductible as either a casualty or theft loss; (3) whether
petitioner may deduct a $58,462 net operating loss (NOL) in 1988;
(4) whether petitioner may deduct, as charitable contributions,
certain payments he made in 1987 and 1988; (5) whether petitioner
is entitled to a deduction under section 215(a)2 for amounts paid
to his former spouse in 1988 prior to the entry of a State court
order for support; and (6) whether petitioner is liable for the
addition to tax under section 6651(a)(1) for the years 1987 and
1988.
For convenience, we combine our findings of fact and opinion
under each separate issue heading. We note that for all of the
issues, petitioner has the burden of proving error in
respondent's determinations. Rule 142(a); Welch v. Helvering,
290 U.S. 111 (1933). Some of the facts have been stipulated and
are so found. The stipulation of facts and the accompanying
1 Related issues are the classification of dividend income
received on the stock, margin interest, and other investment
expenses related to holding the stock. Petitioner reported these
items on a Schedule C, Profit or (Loss) From Business or
Profession.
2 All section references are to the Internal Revenue Code
in effect for the years in issue. Rule references are to the Tax
Court Rules of Practice and Procedure.
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