Gary D. and Lindy H. Combrink - Page 14




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          shareholder must have incurred the assumed liability to acquire             
          the transferred stock; and (4) the transferred stock must not               
          have been acquired from a person whose stock was attributable to            
          the shareholder under the section 318 attribution rules.                    
               In the present controversy, respondent challenges only the             
          third of the elements enumerated above.  Accordingly, we focus              
          our analysis on whether the $174,133.20 liability released by               
          COST was incurred by Mr. Combrink to acquire the LINKS stock.               
          Petitioners bear the burden of proving that this question should            
          be answered in the affirmative.  See Rule 142(a).                           
               Of the $174,133.20 assumed by COST, the stipulated evidence            
          explicitly establishes only that $72,263.38 was transferred to or           
          used for the benefit of LINKS.  Remittances on August 31 and                
          December 20, 1995, of $15,729.17 and $11,228.64, respectively,              
          were applied to repay creditors for services and property related           
          to the LINKS business.  Then, in 1996, payments totaling                    
          $45,305.57 were made directly to LINKS.  However, the parties               
          also agreed that all nine accounts receivable transactions,                 
          including those on May 26 and December 29, 1995, were                       
          consistently treated as loans from COST to Mr. Combrink, followed           
          by loans from him to LINKS.  On the basis of such consistency, we           











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