- 391 -
pay them were paid by or on behalf of Kanter. We reject
respondent's attempt to raise additional grounds for
disallowance. Unfortunately for respondent, any additional
grounds were abandoned by the oral stipulations at trial and
cannot be resurrected on brief. See CSI Hydrostatic Testers,
Inc. v. Commissioner, 103 T.C. 398, 399 n.1 (1994), affd. 62 F.3d
136 (5th Cir. 1995); Church of Scientology v. Commissioner, 83
T.C. 381 (1984), affd. 823 F.2d 1310 (9th Cir. 1987).
As reflected in our findings of fact, we hold that the
expenditures paid from the Administration Co. and Principal
Services special E accounts were Kanter's funds, and therefore
the Kanters are entitled to the disallowed Schedule A and C
deductions and expenses claimed for the years 1986 through 1989.
Issue 10. Whether Kanter, in 1983, Realized Capital Gains Under
Section 357(b) and (c) From the Assumption by Cashmere Investment
Associates, Inc., of Partnership Interests Having Negative
Capital Accounts and Whether, Under Section 453, the Installment
Method was Available for the Reporting of Such Gains
FINDINGS OF FACT
In the notice of deficiency for 1983, respondent made the
following determinations:
Income From Assumption by Cashmere Investment
Associates, Inc. of Liabilities in Excess of Basis
It is determined that you received directly or
indirectly additional capital gain income of $476,889
on the transfer of property to a corporation in 1983.
It is determined that your grantor trusts had a zero
basis and a negative capital account of $476,889 in the
partnership interests transferred. The transfer of
other assets to the corporation by the trusts has no
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