- 15 - find that the desire to make a profit was not completely lacking, it was only incidental in nature. Cotner v. Commissioner, T.C. Memo. 1996-428. Petitioners cannot avoid the effect of the statute and the regulations disallowing petitioners to claim a loss relating to the sale of a residence by dividing the transaction into a series of transactions. Under these circumstances we shall consider the transaction as a whole and shall not allow petitioners to claim a loss under section 165(c)(2). Cf. United States v. Kyle, 242 F.2d 825 (4th Cir. 1957); Quinn v. Commissioner, T.C. Memo. 1983- 485; Butrick v. Commissioner, T.C. Memo. 1972-59. Consequently, we hold that petitioners' primary motive in purchasing the Palm Springs House was not profit and that petitioners are therefore not entitled to capital loss carryovers for the years in issue. To reflect our disposition of the disputed issue, as well as petitioners' concessions, Decision will be entered for respondent.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
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