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(c) as capital losses under section 165(f), or
(d) as business bad debts within the meaning of section
166;2 and
(3) whether petitioners are liable for accuracy-related
penalties authorized by section 6662?
FINDINGS OF FACT
Background
Some of the facts have been stipulated and are so found. We
incorporate by this reference the stipulation of facts and
attached exhibits.
Petitioners James P. Shea and Patricia H. Shea were married
and filed a joint Federal income tax return for the taxable year
1992.3 At the time their petition was filed, petitioner James P.
Shea resided in Troy, Michigan, and petitioner Patricia H. Shea
resided in Ludington, Michigan.
Petitioners Christopher M. Shea and Kim A. Shea were married
and filed a joint Federal income tax return for the taxable year
2 In their petitions, petitioners asserted an additional
ground for deducting the losses claimed, contending that the
losses qualified as small business losses under sec. 1244.
However, petitioners did not include the sec. 1244 issue in
either their trial memorandum or their posttrial briefs and
presented no evidence at trial in support of their position.
Consequently, the petitioners are deemed to have abandoned the
sec. 1244 issue. See Bernstein v. Commissioner, 22 T.C. 1146,
1152 (1954), affd. per curiam 230 F.2d 603 (2d Cir. 1956).
3 James P. Shea and Patricia H. Shea subsequently divorced.
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