Larry L. Beeler and Cynthia J. Beeler - Page 9

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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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