William H. Maloof - Page 13

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          not squarely on point and Golsen rule inapplicable), affd. 693              
          F.2d 459 (5th Cir. 1982); Golsen v. Commissioner, 54 T.C. 742,              
          756-757 (1970) (the Golsen rule requires the Court to follow a              
          Court of Appeals decision that is squarely on point if appeal               
          from its decision lies to that Court of Appeals), affd. 445 F.2d            
          985 (10th Cir. 1971).                                                       
          Loss of Control                                                             
               Petitioner makes a third argument for increasing his basis             
          by the amount of the $4 million loan.  Petitioner argues that he            
          lost “control” of Level Propane and was therefore entitled to a             
          basis increase by the amount of the cost he associated with                 
          losing control of the S corporation.  Petitioner has not                    
          substantiated, however, any alleged loss of control.  Nor has               
          petitioner provided us with a means to value the loss of control.           
          Even had petitioner substantiated some transitory loss of                   
          control, no basis-increasing event occurred.  Petitioner remained           
          at all times the owner of his shares.  We conclude that                     
          petitioner has failed to show any economic outlay for his alleged           
          loss of control.                                                            
          Form of the Transaction                                                     
               Finally, we address petitioner’s argument that we                      
          recharacterize the form of the loan transaction as a loan to                
          himself that he then advanced to Level Propane.  Taxpayers are              
          ordinarily bound by the “form” of their transaction and may not             

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