Mel T. Nelson - Page 37

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               I agree with respondent’s observation.  Although “section              
          465 had its origins in Congress’ concern over the use of                    
          nonrecourse financing or other devices in tax oriented                      
          investments, the scope of section 465 is not limited to tax                 
          shelters.”  Lansburgh v. Commissioner, 92 T.C. 448, 451 (1989)              
          (citing Peters v. Commissioner, 77 T.C. 1158, 1165 (1981)).  The            
          legislative intent of section 465--to forestall current                     
          reductions in income tax liability arising from basis step-ups              
          that haven’t been and won’t be paid for--prescribes yet another             
          antidote for the unpaid basis step-ups claimed by petitioners in            
          the case at hand and other pending cases.                                   
               HALPERN, J., agrees with this concurring opinion.                      

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