Humes Houston Hart - Page 2

                                        - 2 -                                         
               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             
               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                    
               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.                                      

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  Next

Last modified: May 25, 2011