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6231(a)(5), and we have found none. On the contrary, section
6231(a)(5) itself provides that the term "affected item" means
"any item to the extent such item is affected by a partnership
item." (Emphasis added.) See also Maxwell v. Commissioner, 87
T.C. at 790-791 ("An item whose existence or amount is dependent
on any partnership item is an affected item.") (Emphasis added.)
As we said in Hambrose Leasing v. Commissioner, 99 T.C. 298,
308 (1992): "partnership liabilities should be determined and
taken into account at the partnership level whenever such
determination produces a uniform effect on the partners."
(Emphasis added.) Such is not the case where, as here, the
treatment of one partner's activities (vis-a-vis the partnership)
as passive or nonpassive has no impact on the treatment of
another partner's activities. In such case, a uniform effect on
the partners is not produced.
We therefore conclude that the characterization of losses as
either passive or nonpassive in the hands of a partner is an
affected item under section 469, and we so hold.
Finally, petitioners argue that
If respondent asserts that the [section] 469 issue is
an affected item for 1989 and 1990, respondent must
also admit that the computational adjustments for 1987
and 1988 should not have been made, since they involved
an item requiring a partner level determination.
Notwithstanding petitioners' assertions, our conclusion that the
characterization of losses in the hands of petitioners for 1989
and 1990 constitutes an affected item is not inimical to
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