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petitioner acquired with funds borrowed from the joint
venture. However, one of the findings of fact requested by
petitioners in their post-trial brief states as follows:
"Petitioners basis in the partnerships which became
worthless was $1,240,000." Respondent answered
"no objection" to this requested finding and, in effect,
conceded this issue.
Third, respondent determined that Mr. Lemons had
realized a long-term capital loss in 1986. "Long-term
capital loss" means loss from the sale or exchange of a
capital asset held for more than 1 year. Sec. 1222(4).
In these cases, Mr. Lemons purchased the nine club member-
ships on or about January 16, 1986, at the time the beach
club closed the loan transaction with the permanent lender,
Sandia. The parties agree that the club memberships had
become worthless by the end of 1986. Petitioners disagree
that the losses should be treated as capital losses but
they have not raised an issue about the treatment of the
losses as long-term capital losses, rather than as a short-
term capital losses.
Fourth, respondent determined that the subject losses
arose from the sale or exchange of capital assets, the
club memberships. See sec. 165(f). Respondent's brief
acknowledges that the club memberships became worthless and
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