- 5 -
206 (1988); Spencer v. Commissioner, 110 T.C. 62, 83-84 (1998),
affd. without published opinion 194 F.3d 1324 (11th Cir. 1999);
Perry v. Commissioner, 54 T.C. 1293, 1296 (1970), affd. 27 AFTR
2d 71-1464, 71-2 USTC par. 9502 (8th Cir. 1971); Raynor v.
Commissioner, 50 T.C. 762, 770-771 (1968).
Petitioners bear the burden of proof.2 Rule 142(a)(1).
B. Whether Selfe v. United States Controls This Case
Petitioners rely on Selfe v. United States, 778 F.2d 769,
772-774 (11th Cir. 1985), in which the U.S. Court of Appeals for
the Eleventh Circuit held that, in certain circumstances, a
shareholder's basis in S corporation stock includes the amount of
the shareholder’s guaranty of a loan to the S corporation, even
though the shareholder has not satisfied any of the obligation.
Id. at 774.
We have previously stated our disagreement with the
reasoning in Selfe v. United States, supra. Estate of Leavitt v.
Commissioner, 90 T.C. 206, 216 (1988), affd. 875 F.2d 420 (4th
Cir. 1989). Even if we had not done so, we disagree with
petitioner’s contention that the circumstances in this case are
similar to those in Selfe.
2 Petitioners do not contend that respondent bears the
burden of proof under sec. 7491. Taxpayers bear the burden of
proving that the requirements under sec. 7491(a) are met. H.
Conf. Rept. 105-599, at 239 (1998), 1998-3 C.B. 747, 993; S.
Rept. 105-174, at 45 (1998), 1998-3 C.B. 537, 581.
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