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method--to remove any realistic possibility that the taxpayer
will suffer an economic loss if the transaction turns out to be
unprofitable." American Principals Leasing Corp. v. United
States, 904 F.2d at 483. The economic reality test was applied
by this Court in Levien v. Commissioner, 103 T.C. 120, 126
(1994), affd. without published opinion 77 F.3d 497 (11th Cir.
1996).
However, the Court of Appeals for the Sixth Circuit, to
which an appeal in this case would lie, has disagreed with the
majority of circuits and has adopted a "worst-case scenario" test
for the determination of whether a taxpayer is protected from
loss within the meaning of section 465(b)(4). See Martuccio v.
Commissioner, 30 F.3d 743 (6th Cir. 1994), revg. T.C. Memo. 1992-
311; Emershaw v. Commissioner, 949 F.2d 841 (6th Cir. 1991),
affg. T.C. Memo. 1990-246. Under the "Golsen rule", "where the
Court of Appeals to which appeal lies has already passed upon the
issue before us, efficient and harmonious judicial administration
calls for us to follow the decision of that court." Golsen v.
Commissioner, 54 T.C. 742, 757 (1970), affd. 445 F.2d 985 (10th
Cir. 1971). The Court of Appeals for the Sixth Circuit has
spoken definitively on the "at-risk" issue as it relates to this
case. Consequently, in the instant case, this Court is bound to
apply the "worst-case scenario" standard in determining whether
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