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Petitioners do not argue, and the facts do not indicate,
that petitioner’s ownership interest in Gandy’s qualifies for any
of the section 1221 exclusions from the definition of capital
assets. Notwithstanding that petitioner was in the business of
lending money, and regardless of the purpose for which he
initially acquired the stock, his ownership interest in Gandy’s
was a capital asset as generally defined in section 1221.
Accordingly, we conclude, pursuant to respondent’s
concession, that petitioner’s advances to Gandy’s resulted in
long-term capital losses, deductible pursuant to the limitations
of section 1211(b).
To reflect the foregoing and concessions by the parties,
Decision will be entered
under Rule 155.
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