Charles A. Greene and Christine J. Greene - Page 23

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          for 1983 alone $46,007 in tax losses.7  This represents better              
          than a 4-to-1 writeoff, enough to have put petitioner on "notice            
          that the investment scheme was primarily for a tax purpose."                
          Zfass v. Commissioner, 118 F.3d at 190; Barnard v. Commissioner,            
          731 F.2d 230, 231 (4th Cir. 1984), affg. Fox v. Commissioner, 80            
          T.C. 972 (1983); see Goldman v. Commissioner, 39 F.3d 402, 407              
          (2d Cir. 1994) (Mid Continent offering memorandum promised                  
          "improbable tax advantages"), affg. T.C. Memo. 1993-480.                    
               It was a "small" investment, testified petitioner, that did            
          not warrant an expensive investigation, and besides, he argues,             
          the problems that caused the partnership to fail were "technical"           
          in nature.  While the investment may have been small to                     
          petitioner, we disagree that a costly investigation was required            
          to reveal the true nature of the partnership.                               
               Petitioner was not an original investor in Mid Continent               
          upon its creation in 1981.  Unlike Fields, from whom he obtained            
          his partnership interest in 1983, petitioner had the benefit of 2           
          years of operations to observe.  Petitioner did not have to rely            
          merely on the representations of the partnership.  Petitioner               
          testified that he "spoke to" other Mid Continent investors in               
          1983 before buying Fields' interest.  The only information they             

               7In their brief petitioners state that they received a "tax            
          benefit of $24,000 over two years."                                         

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