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we find that petitioners have failed to carry their burden of
establishing that Mr. Ramsburg purchased from Kildare Timmy on
January 1, 1998, its racing and breeding horses and stud rights.
On that record, we further find that petitioners have failed to
carry their burden of establishing that Mr. Ramsburg received
only money from Kildare Timmy in liquidation of his interest in
that partnership. On the record before us, we find that on
January 1, 1998, Kildare Timmy distributed to Mr. Ramsburg in
liquidation of his interest in that partnership not only money
(i.e., the Kildare Timmy bank account balance) but also its
racing and breeding horses and stud rights.26
26On the record before us, we also find that petitioners
have failed to carry their burden of establishing that on Jan. 1,
1998, Mr. Stottlemeyer “effectively received [from Kildare
Timmy], in liquidation of the partnership, a credit equal to his
50% share of the assets of the partnership against his liability
to Mr. Ramsburg [under Mr. Stottlemeyer’s note] in the amount of
$146,750.” In addition, Mr. Stottlemeyer’s note that he signed
on Dec. 31, 1994, provided that Mr. Stottlemeyer promised to pay
to Mr. Ramsburg the “lesser of my [Mr. Stottlemeyer’s] share of
cash proceeds from [the] disposition of horses owned by the
entity known as Kildare Timmy or the sum of one hundred fourty
[sic] six thousand seven hundred and fifty Dollars * * * with
interest * * * at the rate of 0% per annum.” Mr. Stottlemeyer’s
note did not specify any date(s) on which Mr. Stottlemeyer was to
make any payment(s) thereunder. On the record before us, we find
that petitioners have failed to carry their burden of establish-
ing that there was a loan by Mr. Ramsburg to Mr. Stottlemeyer
that was evidenced by Mr. Stottlemeyer’s note. See, e.g., Haag
v. Commissioner, 88 T.C. 604, 616 n.6 (1987), affd. without
published opinion 855 F.2d 855 (8th Cir. 1988). Assuming
arguendo that petitioners had carried their burden of establish-
ing that there was a loan by Mr. Ramsburg to Mr. Stottlemeyer
that was evidenced by Mr. Stottlemeyer’s note, we have found that
there was no sale by Kildare Timmy to Mr. Ramsburg of its horses
and stud rights. As a result, there were no “cash proceeds from
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