- 36 - 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 andPage: Previous 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Next
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