Charles A. Greene and Christine J. Greene - Page 16

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          exact nature of the investment were stipulated, and no witnesses            
          save for petitioner testified at trial.  A fair reading, however,           
          of the stipulation of facts and the briefs of the parties shows             
          that they agree that the underlying facts of the partnership                
          operations are as discussed in Webb v. Commissioner, T.C. Memo.             
               In Webb v. Commissioner, supra, we found that the Mid                  
          Continent promotion offered limited partnership interests for               
          sale by a confidential placement memorandum dated October 26,               
          1981.  The partnership had an individual and a corporate general            
               A related entity, Tround International, Inc. (Tround), was a           
          company principally owned by David Dardick, who was attempting to           
          develop a high speed oil and gas drill (the Terra-Drill).  In               
          November of 1980, Tround and Mitchell entered into an agreement             
          granting to Mitchell for 5 years the right to use, lease, and               

               6For example, the parties have stipulated that in Webb v.              
          Commissioner, T.C. Memo. 1990-556, the Court found that the                 
          activities of Mid Continent had no profit motive in 1981 and 1982           
          and that underpayments of tax related to partnership deductions,            
          losses, and credits were attributable to tax-motivated                      
          transactions.  In their brief, petitioners request a finding of             
          fact that in Webb v. Commissioner, supra, the Court found "that             
          the Partnership was a sham, and in a separate action [docket No.            
          5757-92] the Court subsequently disallowed all of the items                 
          relating to the Partnership's 1983 and 1984 tax years in a                  
          partnership-level TEFRA proceeding."  It would be, in any event,            
          petitioners' burden to prove the context in which their                     
          deductions and credits were taken.  Rule 142(a); Welch v.                   
          Helvering, 290 U.S. 111, 115 (1933); Bixby v. Commissioner, 58              
          T.C. 757, 791-792 (1972).                                                   

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