16 taxpayers could not include the amount of the obligations in computing the cost bases of the lists. Petitioner's attempt to distinguish Wakefield v. Commissioner, supra, is not persuasive. Petitioner contends that it is significant the payments therein were based on a percentage of sales, whereas her payments were to be a fixed monthly sum. The crucial factor, however, is the same in both cases: an obligation would only arise if commissions were earned. We find that petitioner's liability under the agreement was contingent, and, therefore, no amount of the obligation may be included in computing her cost basis. Thus, petitioner has not established that the cost basis of her interest in the customer lists exceeded her cash payments. In her notice of deficiency, respondent allowed petitioner deductions for the amount of the cash payments in the taxable years in issue.3 Therefore, we need not address respondent's argument that petitioner acquired franchise rights. Based on the disallowance of a portion of petitioner's amortization deductions for tax year 1988 and 1989, and the disallowance of such deductions in 1990 and 1991, respondent determined that petitioner did not sustain net operating losses in any of the years in issue. Thus, as a result of our decision 3 Respondent determined that petitioner made payments of $15,024.58 in 1989. We find that petitioner made payments of $16,424.58.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
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