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"other" liabilities was $27,934. For 1988, petitioners
reported income from the Dondi Presidents' Partnership II.
Petitioner was a limited partner in the 1626 New York
Associates Ltd. Partnership. Petitioner testified that he
paid approximately $405,000 for his interest in the
partnership by making a cash downpayment and signing a
promissory note. Petitioner could not recall the amount
of the downpayment or promissory note. According to
petitioner, his obligation under the note was "bonded" by
Continental Casualty in Chicago, which ultimately obtained
a judgment of $246,000 against him. Petitioners did not
introduce the judgment into evidence, and the record does
not state the date of the judgment.
We note that the Schedules K-1 issued to petitioner by
the 1626 New York Associates Ltd. Partnership show that his
capital at the end of 1987 and 1988 was ($112,988.56) and
($157,628.56), respectively. We further note that the
Schedule K-1 for 1988 shows nonrecourse liabilities of
$309,682 and other liabilities of $57,352, and the Schedule
K-1 for 1987 shows nonrecourse liabilities of $428,488 and
other liabilities of $53,057.
Petitioners make a general argument that respondent
erred by disallowing losses from the subject three
partnerships because the Schedules K-1, issued by the
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