- 564 -
With respect to the purported sales of notes receivable to
MAF in 1987, IRA failed to establish that the sales of the notes
were in substance bona fide sales that gave rise to bona fide
losses.
IRA failed to establish that any of these notes became
wholly or partially worthless in 1987.
OPINION
IRA again makes the same arguments that were made with
respect to Issue 21; namely, that (1) certain statements by
respondent's counsel at trial are "concessions"; (2) IRA
substantiated its basis and is entitled to the ordinary losses
claimed; and (3) alternatively, if the Court holds either that
(a) the transactions were not bona fide transactions for tax
purposes, or (b) no loss is allowable under section 267 because
the sales were to a related party, IRA is still entitled to
deductions for partial worthlessness under section 166(a)(2).
Respondent, on the other hand, contends that IRA failed to meet
its burden of proof on this issue.
We agree with respondent for several reasons. The facts
pertaining to the sales of these notes parallel the facts
considered in Issue 21, wherein Kanter individually sold notes,
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