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placement fees which we previously held should have been reported
by Mr. Latzak. See Latzak v. Commissioner, T.C. Memo. 1994-416.
Second, however, respondent also contends that the carryovers
should be reduced to reflect the income attributable to contracts
for deed entered in years 1989 through 1992, as such gain was
properly reportable in those years.
In general, the taxpayer bears the burden of establishing
both the actual existence of net operating losses in the prior
years and the amount of such losses that may be carried to the
years at issue. See Rule 142(a); Jones v. Commissioner, 25 T.C.
1100, 1104 (1956), revd. and remanded on other grounds 259 F.2d
300 (5th Cir. 1958); Ocean Sands Holding Corp. v. Commissioner,
T.C. Memo. 1980-423, affd. without published opinion 701 F.2d 167
(4th Cir. 1983); Moyer v. Commissioner, T.C. Memo. 1976-69, affd.
without published opinion 565 F.2d 152 (3d Cir. 1977). We have
jurisdiction to consider such facts related to years not in issue
as may be necessary for redetermination of tax liability for the
period before the Court. See sec. 6214(b).
Here, petitioners have not and could not, given our
conclusions above, establish their incurrence of and entitlement
to deduct losses premised in part on a failure to report income
attributable to the contracts for deed entered in the loss years.
We agree with respondent that these adjustments should be taken
into account along with those based on the income properly
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