- 529 -
In view of the foregoing, IRA is not entitled to any
deductions, credits, or losses associated with these purported
transactions.
G. Equitable Leasing
This is another computer leasing transaction purportedly
engaged in by IRA. A reference is made to it in the summary
schedules of a witness for IRA. While respondent does not agree
with the numbers delineated in the summary schedules, it appears
that this transaction was considered in computing the tax
liability of IRA for the taxable year ended December 31, 1980.
No facts to support the basis for the income, deductions,
credits, or losses, which apparently were claimed in connection
with this transaction, were presented by IRA. Since IRA had the
burden of proof on this issue, we sustain respondent's
determinations of disallowance with respect to this transaction.
Finally, the long-term promissory notes executed by IRA to
finance the purported computer sale and leaseback transactions do
not constitute valid indebtedness because there was little
possibility that IRA would ever be required to make the payments
due.
IRA's long-term promissory notes in these various
transactions were neither unconditional nor enforceable. They
are not unconditional because the promise to pay in most of the
notes was expressly contingent, by virtue of the deferral
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