- 574 -
and instead claiming that the stock became wholly worthless in
the preceding year, 1987. Moreover, no evidence was presented to
establish IRA's basis in the IFI stock. Consequently, we
conclude that IRA failed to meet its burden of establishing
entitlement to a worthless security deduction under section
165(g) on the IFI stock. Thus, we sustain respondent's
determination that no capital loss is allowable to IRA for 1987
with respect to the IFI stock.
With respect to the claimed capital losses on the sale of
the three partnership interests to MAF, the Court again rejects
IRA's "concession" argument that certain statements of
respondent's counsel constituted an abandonment or waiver of the
grounds in the notice of deficiency for disallowance of these
losses. We also conclude that IRA failed to establish the
amounts claimed as bases and that the purported sales to MAF of
the partnership interests were bona fide transactions.
Therefore, we sustain respondent's determination.
Issue 29. Whether IRA Is Entitled To Deduct as Business Expenses
Amounts Paid to J.D. Weaver in 1979, 1981, and 1982
OPINION
In the notice of deficiency issued to IRA for 1983
respondent disallowed "commission expenses" in the amount of
$108,753. The claimed expenses are for payments made by IRA's
subsidiary KWJ Corporation to J.D. Weaver. Although respondent
acknowledges that the 1983 adjustment was erroneously conceded,
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