Investment Research Associates - Page 521




                                       - 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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