- 2 - The issues for decision are: (1) Whether petitioners are entitled to a deduction under section 162 or under section 165(e)1 for a $450,000 payment in connection with a guarantor agreement; and (2) whether petitioners may include the $450,000 payment in computing net operating losses (NOL's) from the bankruptcy estate of petitioner Manaharlal C. Parekh. FINDINGS OF FACT Some of the facts have been stipulated and are so found. The stipulation of facts and the attached exhibits are incorporated herein by this reference. Petitioners, husband and wife, resided in Odessa, Texas, at the time they filed the petition in this case. Petitioners filed joint Federal income tax returns for the 1990 and 1991 taxable years. Manaharlal C. Parekh (petitioner) is a thoracic and peripheral vascular surgeon who practices in the Midland/Odessa area of Texas. 1 At trial, petitioners raised for the first time the deductibility of the $450,000 payment under sec. 165(e) as a theft loss. We will not, as a general rule, consider an issue raised for the first time at trial since it has not been properly pleaded. See Estate of Mandels v. Commissioner, 64 T.C. 61, 73 (1975). When issues not raised by the pleadings are tried by implied consent of the parties, however, the issues shall be treated as if they had been raised in the pleadings. Rule 41(b). The parties satisfied Rule 41(b) when they introduced the issue at trial and acquiesced in the introduction of evidence on that issue without objection. LeFever v. Commissioner, 103 T.C. 525, 538-539 (1994), affd. 100 F.3d 778 (10th Cir. 1996); see also Hardin v. Manitowoc-Forsythe Corp., 691 F.2d 449, 456 (10th Cir. 1982).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011