Melvin J. Laney and Carolyn A. Laney - Page 41

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                  Respondent concedes that Laney suffered a capital loss that,                        
            under section 165(f), could be deducted and carried over within                           
            the limits of sections 1211 and 1212.  Respondent further                                 
            concedes that “the amount of loss available for carryforward as                           
            of 1986 is $90,578.21".  Petitioners have not reported any                                
            capital gains or losses for 1986, 1987, or 1988.  Under section                           
            1211(b)(1), petitioners are entitled to deduct against ordinary                           
            income up to $3,000 of this capital loss carryover for each of                            
            the years before the Court.                                                               
                  It is evident that respondent’s concession exceeds the                              
            maximum amount that petitioners could deduct for the entire                               
            period before us.  Accordingly, even if we were to conclude that                          
            petitioners are entitled to carry over a greater amount of loss                           
            than respondent has conceded, any such conclusion could not                               
            result in any greater deduction by petitioners for any of the                             
            years in issue, and so any such conclusion could not affect the                           
            decision to be entered in the instant case.                                               
                  As a result, we decline to determine in the instant case                            
            whether petitioners are entitled to a greater capital loss                                
            carryover than respondent has conceded.  Chevron Corp. v.                                 



                  14(...continued)                                                                    
            explanations of only a small portion of his 1,300-plus exhibits,                          
            do not leave us in a position to determine on the record in the                           
            instant case whether petitioners would be entitled to deductions                          
            under sec. 195 that would affect any of the years in issue.                               




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