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$339,173 to the capital of Petunia. Petunia received $339,173 in
capital contributions of which $220,611 was contributed in cash
and the remainder of which was represented by promissory notes.
On Schedule E of his Federal income tax return for 1980,
petitioner reported flow-through losses from Petunia totaling
$40,623.
On audit, respondent disallowed the $40,623 in partnership
losses claimed by petitioner.
Discussion
Summary judgment or partial summary judgment may be granted
if the pleadings and other materials demonstrate that no genuine
issue exists as to any of the material facts and that a decision
may be rendered as a matter of law. Rule 121(b); Sundstrand
Corp. v. Commissioner, 98 T.C. 518, 520 (1992), affd. 17 F.3d 965
(7th Cir. 1994).
In Levien v. Commissioner, 103 T.C. 120, 125-130 (1994),
affd. without published opinion 77 F.3d 497 (11th Cir. 1996),
Thornock v. Commissioner, 94 T.C. 439, 447-449 (1990), and Levy
v. Commissioner, 91 T.C. 838, 862-865 (1988), we explained
generally legal principles applicable to the at-risk issue
involved in this case. Under section 465, where individual
investors or closely held corporations engage in the leasing of
depreciable property, any loss with respect to the leasing
activity is allowed only to the extent the investors are
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