- 36 -
we had found that Mr. Ramsburg disposed of his entire interest in
the passive activity in question to an unrelated person, on the
record before us, we find that petitioners have failed to carry
their burden of establishing that, as required by section
469(g)(1)(A), they recognized all of any gain or all of any loss,
as the case may be, realized upon any such disposition.
Based upon our examination of the entire record before us,
we find that section 469(g)(1) does not permit petitioners to
treat for 1998 petitioners’ passive losses attributable to
Kildare Timmy as nonpassive losses.
We have considered all of the contentions and arguments of
the parties that are not discussed herein, and we find them to be
without merit, irrelevant, and/or moot.29
28(...continued)
Ramsburg’s interest in Kildare Timmy would have included property
other than money, unrealized receivables, and inventory. See
sec. 731(a)(2). Moreover, if any of Kildare Timmy’s horses or
stud rights that it distributed in liquidation of Mr. Ramsburg’s
interest in that partnership were not to have any sec. 1245(a)
gain associated with it, none of any loss realized by Mr.
Ramsburg upon that distribution would be recognized under sec.
731(a)(2). That is because the distribution in liquidation of
Mr. Ramsburg’s interest in Kildare Timmy would have included
property other than money, unrealized receivables, and inventory.
See sec. 731(a)(2).
29We shall, however, address petitioners’ contention that on
Jan. 1, 1998, the date on which we have found Kildare Timmy
distributed to Mr. Ramsburg its horses and stud rights and the
Kildare Timmy bank account balance, Mr. Stottlemeyer owned a 50-
percent capital interest in Kildare Timmy. In support of that
contention, petitioners assert, inter alia, that, in addition to
cash, Mr. Stottlemeyer made capital contributions to Kildare
Timmy of Mr. Stottlemeyer’s management services. On the record
(continued...)
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