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does not establish that petitioner had any other such sales of
stock during the relevant year. In that petitioner has not
disproved respondent’s determination that his stock proceeds are
taxable in full, with the exception of our findings above as to
basis, that those proceeds were the only sales proceeds received
by petitioner during the subject year, and that petitioner’s
gains and losses from his stock sales were short-term capital
gains and losses, we sustain respondent’s determination as to
this issue.
4. Loss From Only Kids
The pro rata share of an S corporation’s loss passes through
to its shareholders. Sec. 1366(a)(1). A shareholder may deduct
such a loss to the extent that it does not exceed the
shareholder’s adjusted basis in (1) the shareholder’s stock in
the corporation plus (2) any debt owed by the corporation to the
shareholder. Sec. 1366(d)(1). A taxpayer such as petitioner
must establish that he has acquired basis in the referenced stock
and debt and, to the extent that he does, that his basis in those
items was not reduced to zero because of losses claimed in years
predating the subject year. Hogan v. Commissioner, T.C. Memo.
1999-365. Taxpayers who fail to prove that they have any basis
in an S corporation are considered to have a zero basis in that
corporation. Thomson v. Commissioner, T.C. Memo. 1983-279, affd.
without published opinion 731 F.2d 899 (11th Cir. 1984).
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