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concessions by the parties,1 we must decide whether petitioners
may deduct a loss purportedly attributable to worthless stock.
We hold they may not. Section references are to the Internal
Revenue Code in effect for the applicable year. Rule references
are to the Tax Court Rules of Practice and Procedure.
Background
All facts were either stipulated or found from the exhibits
which the parties submitted with their stipulations of fact.
Those stipulations of fact and exhibits submitted therewith are
incorporated herein by this reference, and the stipulations of
fact are found accordingly. Petitioners are husband and wife.
They resided in Longwood, Florida, when we filed their petition.
Petitioners filed with the Commissioner a joint 1993 Federal
income tax return on September 26, 1995. They claimed on that
return a $455,160 capital loss attributable to $317,424 and
$137,736 of losses reportedly passing through to them from S
corporations named Poinciana Mobile Home Park, Inc. (Poinciana),
1 Petitioners allege in their petition in relevant part that
respondent erred in determining: (1) Michael E. Murray (Mr.
Murray) realized a gain on the foreclosure described herein and
(2) Linda S. Murray is not an innocent spouse. We consider
petitioners to have conceded the latter allegation because: (1)
They did not list the allegation as an issue when they informed
the Court at the calendar call of the issues still in dispute,
(2) they have introduced into the record no evidence as to the
allegation, and (3) their posttrial briefs include no reference
to the allegation. For the same reason, we also consider
petitioners to have conceded the addition to tax and accuracy-
related penalty.
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