-261-
IX. At-Risk and Passive Activity Loss Rules
Respondent argues, alternatively, that to the extent the
losses SMP and Corona reported on their partnership tax returns
are allowed, certain partnership-level determinations relating to
the at-risk and passive activity loss rules must be made in this
proceeding.182 Petitioner argues that we do not have jurisdiction
over at-risk and passive activity loss determinations in a
partnership-level proceeding, and that these issues must be
resolved only in an affected-item proceeding at the partner
level. Because our decision in these cases results in a
disallowance of the losses that SMP and Corona claimed on their
182 Under sec. 465, respondent argues that to the extent the
losses SMP reported on its sales of the $150 million and $81
million receivables are allowed, those losses arose from a film
activity that was a separate activity from its other investment
activities for purposes of applying the at-risk limitation rules.
Respondent argues that to the extent the loss Corona reported on
its sale of the $79 million receivable is allowed, that loss
arose from a film activity that was a separate activity from its
portfolio investment activities for purposes of applying the at-
risk limitation rules.
Additionally, under sec. 469, respondent argues that to the
extent the losses SMP reported on its sales of the $150 million
and $81 million receivables and the portions of its Corona
membership interests, and any flow-through losses from Corona,
are allowed, those losses arose from a film trade or business
that cannot be combined with other trade or business activities
in SMP. Respondent argues that to the extent the loss Corona
reported on its sale of the $79 million receivable is allowed,
that loss arose from a film trade or business that cannot be
combined with other trade or business activities in SMP.
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