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her reply brief when she opted not to object to a proposed
finding in respondent’s opening brief that petitioner bears the
burden of proof on the basis of her counsel’s concession. See
Rule 151(e)(3) (“In an answering or reply brief, the party shall
set forth any objections, together with the reasons therefor, to
any proposed findings of any other party”); see also Jonson v.
Commissioner, 118 T.C. 106, 108 n.4 (2002) (the failure to object
to a proposed finding of fact may be treated as a concession of
that proposed finding), affd. 353 F.3d 1181 (10th Cir. 2003);
Morgan v. Commissioner, T.C. Memo. 2000-231 (same), affd. 23 Fed.
Appx. 813 (9th Cir. 2001). We hold on the basis of these
concessions that petitioner bears the burden of proof.13
Section 183, which applies to activities engaged in by
individuals or S corporations, generally limits the deductions
for an “activity not engaged in for profit” to the amount of
gross income received from the activity. Sec. 183(a) and (b).
Section 183(c) defines an “activity not engaged in for profit” as
“any activity other than one with respect to which deductions are
13 Even if the applicability of sec. 7491(a)(1) had been at
issue, we would have concluded that it did not apply. Petitioner
has not in this proceeding presented “credible evidence” on the
substantive issue at hand. See Higbee v. Commissioner, 116 T.C.
438, 442 (2001); see also Blodgett v. Commissioner, F.3d
(8th Cir. Jan. 12, 2005), affg. T.C. Memo. 2003-212. Nor has she
proven that she complied with the requirements of sec.
7491(a)(2)(A) and (B) to substantiate items, to maintain required
records, and to cooperate fully with respondent’s reasonable
requests. See Weaver v. Commissioner, 121 T.C. 273, 275 (2003).
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