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circumstances to place the burden on the Commissioner, the
statute is effective only for court proceedings that arise in
connection with examinations commencing after July 22, 1998.
Internal Revenue Service Restructuring and Reform Act of 1998,
Pub. L. 105-206, sec. 3001(c), 112 Stat. 727. Since the record
here is devoid of evidence showing that the underlying
examination began after the relevant date, and since petitioner
has at no time contended that the provisions of section 7491 are
applicable, we conclude that the traditional burden remains upon
petitioner.
C. Analysis Regarding Intangible Assets
In order to qualify for a deduction pursuant to section
165(a) based on the abandonment of property, a taxpayer must have
owned the property it claims to have abandoned. Respondent
contends that petitioner has failed to establish that it owned
any intangible asset in 1995. Petitioner claims to have acquired
ownership of intangible assets that were acquired by Kaufman, who
acquired client files, a client list, and associated goodwill in
connection with the dissolution of the partnership. Petitioner
claims that Kaufman assumed 28 percent of $544,880 of partnership
liabilities in connection with the dissolution of the
partnership. Petitioner claims to have sufficient basis for the
claimed abandonment loss deduction because Kaufman transferred to
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