- 3 - (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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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