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stock as a worthless security in 1987. IRA failed to establish
that its stock in IFI became worthless in 1987.
Pursuant to Kanter's instructions, in late December 1987,
IRA purportedly sold the Brickell Biscayne, Sandberg Village, and
1984 Development, Ltd., partnership interests to MAF for $1,000
each solely in an attempt to establish worthlessness for the
purpose of claiming a loss for Federal income tax purposes.
MAF purchased these partnership interests from IRA as an
accommodation to Kanter.
At the time of IRA's sale of its interests in Brickell
Biscayne and Sandberg Village to MAF, Brickell Biscayne and
Sandberg Village were not dissolved and were still engaged in
their operations.
With respect to these purported sales of partnership
interests, IRA failed to establish that it had any basis in the
partnerships. It also failed to establish that the sales of
these interests were in substance bona fide sales.
IRA failed to establish that its partnership interests in
Brickell Biscayne, Sandberg Village, and 1984 Development Ltd.
became worthless in 1987.
OPINION
Pursuant to section 165(g), an exception is created to the
general requirement of realization through sale or exchange for
losses on certain securities. If a security which is a capital
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