Robert J. Goldberg and Bradley A. Morgan - Page 3




                                        - 3 -                                         
          loss of $12,279.2  Petitioners claimed the loss of $12,279 on               
          their Form 1040, U.S. Individual Income Tax Return, as well as a            
          loss of $1,657,609 based on a sale of securities distributed to             
          petitioner by Alameda.  In addition, petitioners claimed a                  
          $125,000 deduction for legal, accounting, consulting, and                   
          advisory fees.  Respondent issued a notice of final partnership             
          administrative adjustment (FPAA) for Alameda concurrently with              
          the notice of deficiency.  In the FPAA, respondent determined               
          that Alameda was a sham and that none of the deductions that the            
          partnership claimed on its partnership return were allowable.               
          The notice of deficiency issued to petitioners stated the                   
          following:                                                                  
               1.   The deduction of $12,279 shown on your 2001 tax                   
               return as your reported share of the loss purportedly                  
               sustained by Alameda Investments, LLC is disallowed                    
               because you have failed to establish (1) that the                      
               purported loss was sustained in any amount by either                   
               you or any entity in which you held an interest, (2)                   
               that the transaction purportedly generating the loss in                
               question was entered into for profit within the meaning                
               of I.R.C. section 165(c)(2), or (3) that any portion of                
               the loss in question is allowable as a deduction under                 
               any other provision of the Internal Revenue Code.  You                 
               have also failed to establish that, even if loss was                   
               sustained and would otherwise be deducible, any                        
               deduction relating to the loss is not specifically                     
               limited or disallowed by any provision of the Internal                 
               Revenue Code, including without limitation §§ 165, 212,                
               704(d), or 465.                                                        


               2Although petitioner’s Schedule K-1, Partner’s Share of                
          Income, Credits, Deductions, etc., identifies her as the 99-                
          percent partner for part of the year, her share in the profits              
          and losses is listed as 100 percent.                                        





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next 

Last modified: November 10, 2007