- 17 - petitioner's automobile repair activity during that year. Accordingly, we sustain respondent's determination in the notice that for 1993 petitioners are not entitled to deduct the net loss that they claimed in their 1993 Schedule C with respect to petitioner's automobile repair activity, and we reject petition- ers' contention that they are entitled to deduct the net loss that they claimed in their 1993 amended Schedule C.5 Petitioners' Claimed Section 1231 Loss Petitioners contend that they are entitled to an ordinary loss deduction under section 1231 for 1993 for the loss that they realized on the sale of petitioner's Ferrari. Respondent con- tends that petitioners are not entitled to that deduction because they have failed to show that they used that automobile in connection with a trade or business. Pursuant to section 1231(a)(1), if the section 1231 gain exceeds the section 1231 loss, that gain and loss are treated as long-term capital gain and loss, respectively. Pursuant to section 1231(a)(2), if the section 1231 loss exceeds the section 5 Petitioners offered into evidence a document entitled "Profit Intent Test - The Nine Factors". In that document, petitioners allege certain facts relating to petitioner and his automobile repair activity that are not established by the record in this case. We have not relied on that self-serving document as evidence in support of any of the facts that are alleged in that document and that are not otherwise supported by the record in this case.Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
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