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2. Basis in Law
a. Permits
Respondent points out that the Tax Court has not previously
considered whether private parties can convey Pasco County
permits. Respondent contends that this issue is one of first
impression, which provides a basis in law for respondent's
position. We disagree. Respondent's position that petitioners
may transfer their permits has no basis in law because the Pasco
County Code did not permit them to do so and there is no other
authority that says that they may. Beaty v. United States, 937
F.2d 288, 292-293 (6th Cir. 1991) (none of Government's arguments
had a chance of succeeding as a matter of law); see Coastal
Petroleum Refiners, Inc. v. Commissioner, 94 T.C. 685, 688 (1990)
(taxpayer must show that legal precedent does not substantially
support respondent's position); DeVenney v. Commissioner, 85 T.C.
927, 930-931 (1985). Respondent has no basis in law for the
position that private parties can convey Pasco County permits.
Beaty v. United States, supra.
b. Sand
Respondent contends that Watson v. Commissioner, 345 U.S.
544 (1953), is substantial authority that petitioners transferred
sand separately from the land. We disagree. In Watson, the
taxpayer sold a crop of growing oranges and the real property on
which the orange trees grew. The Supreme Court said that the
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