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6015(d)(3)(A), generally, any items that give rise to a
deficiency on a joint return shall be allocated to the individual
filing the return in the same manner as they would have been
allocated if the individual had filed a separate return for the
taxable year.
Under section 6015(c)(4)(A), the portion of the deficiency
for which the electing spouse is liable is increased by the value
of any disqualified asset transferred to the taxpayer. The term
“disqualified asset” means any property or right to property
transferred to the taxpayer making the election under section
6015(c) by the other individual filing the joint return if the
principal purpose of the transfer was the avoidance of tax or
payment of tax. Sec. 6015(c)(4)(B)(i).
Under section 6015(c)(4)(B)(ii), there is a presumption that
any asset transfer that occurs after the date that is 1 year
before the first letter of proposed deficiency is sent by the IRS
has as its principal purpose the avoidance of tax or payment of
tax.
In respondent’s posttrial brief, respondent concedes that
the entire deficiencies for 1984 through 1986 are allocable to
Trupin under section 6015(d)(3)(A). In addition, respondent
concedes that $881,103 and $985,314 are allocable to Trupin in
1982 and 1983, respectively. Respondent contends, however, and
we agree, that the disallowed losses from petitioner’s investment
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