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Petitioner failed to offer any explanation as to why he
failed to report the sale of four trucks in 1989 and two trucks
in 1990. Accordingly, we sustain respondent’s determinations
regarding petitioner’s capital gains from the sale of trucks in
1989 and 1990.
G. McGee Landscaping
The resolution of whether petitioner is allowed to report
the 1990 gains and losses of McGee Landscaping on his individual
return depends on whether the corporate form of McGee Landscaping
is respected for Federal income tax purposes. Generally, the
gains and losses of a corporation which has not filed an election
under section 1362 are not reportable on the shareholder’s
individual income tax return.
Petitioner must show that his landscaping business was not
operated as a corporation. See Brints v. Commissioner, T.C.
Memo. 1989-457. Courts have observed that taxpayers are free to
organize their affairs as they choose, but that those tax
consequences must be accepted regardless of whether their choice
precluded the benefit of some other route that they might have
chosen to follow but did not. See Commissioner v. National
Alfalfa Dehydrating & Milling Co., 417 U.S. 134 (1974).
McGee Landscaping was incorporated in DeKalb County,
Alabama, in 1986. During the years at issue, petitioner was the
sole owner of McGee Landscaping. Petitioner chose to conduct the
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