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total amount of the S corporation’s losses and deductions that
can be passed through to a shareholder in any taxable year is
limited to the sum of that shareholder’s adjusted basis in his or
her stock and the adjusted basis of any indebtedness owed by the
corporation to that shareholder. Sec. 1366(d)(1). A taxpayer’s
share of any S corporation loss in excess of his or her adjusted
basis may be carried over indefinitely. Sec. 1366(d)(2).
In these cases, the parties dispute whether the Roses had a
sufficient basis in their Zephyr interest during 1990, 1991, and
1992 to deduct the losses that they claimed from that
S corporation on their joint Federal income tax returns for those
years. Whether or not an FSAA was sent to Zephyr for 1990, no
such notice is before the Court in these cases. Thus, we do not
have jurisdiction to redetermine Zephyr’s actual income or loss
and the consequential increases or decrease in basis.
The Roses did not assign error in their petition to
respondent’s determination of their basis in their Zephyr
interest during 1990, 1991, and 1992. Under Rule 34(b)(4), any
issue not raised in the assignment of errors is deemed conceded
by the taxpayer. Jarvis v. Commissioner, 78 T.C. 646, 658
(1982); Gordon v. Commissioner, 73 T.C. 736, 739 (1980).
Furthermore, the Roses made the following concession in their
petition with respect to that determination:
a. The Petitioners concede the adjustments
proposed by the Respondent with respect to Zephyr Rock
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