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On brief, petitioners concede that no evidence was offered
to substantiate these claimed IRA deductions.
Consequently, we sustain respondent's determinations in the
FPAA's that RCR #4 and RCR #6 are not entitled to their claimed
IRA deductions for the years in issue. See Rules 142(a), 240(a).
Issue 6. Capital Gains and/or Additional Farm Income
In the respective FPAA's issued to RCR #4 and RCR #6 for the
tax years 1990 and 1991, respondent determined that (1) each
partnership had additional farm income from its transfer to
Barnes Ranches of lambs produced by that partnership's breeding
flock, and (2) the income each partnership reported from the sale
of some of its breeding sheep was ordinary income, rather than
capital gains.
As discussed supra in connection with Issue 1, the Court has
determined that RCR #4 and RCR #6 did not acquire the benefits
and burdens of ownership with respect to the breeding sheep they
purportedly acquired from Barnes Ranches. As a result, RCR #4
and RCR #6 never owned for tax purposes any breeding sheep to
generate this income respondent determined they had for the years
in issue. Accordingly, we hold that the fiscal year capital
gains and/or other farm income adjustments for 1990 and 1991
respondent determined against RCR #4 and RCR #6 cannot be
sustained.
To reflect the foregoing and the parties' concessions,
Decisions will be entered
under Rule 155.
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