J. Ramsay Farah and Elizabeth Farah - Page 23

               We have observed that “‘the taxpayer may have less freedom             
          than the Commissioner to ignore the transactional form that he              
          has adopted.’”  Ill. Power Co. v. Commissioner, 87 T.C. 1417,               
          1430 (1986) (quoting Bolger v. Commissioner, 59 T.C. 760, 767 n.4           
          (1973)).  In applying the substance over form doctrine, we are              
          concerned with the intentions of the parties at the time of the             
          transaction.  Groetzinger v. Commissioner, 87 T.C. 533, 542                 
               To prevail, the taxpayer must provide objective evidence               
          that the substance of the transaction is in accord with the                 
          position argued by the taxpayer rather than the form set forth by           
          the relevant documents.  Id. at 541.  Furthermore, for substance,           
          as opposed to form, to control the tax consequences of a                    
          transaction, the taxpayer must establish the claimed substance of           
          the transaction under a heightened burden of proof.  Norwest                
          Corp. v Commissioner, 111 T.C. 105, 140, 145 (1998); Ill. Power             
          Co. v. Commissioner, supra at 1434.  The strong proof standard              
          requires the taxpayer to present more than a preponderance of the           
          evidence in support of his characterization of the transaction.             
          Ill. Power Co. v. Commissioner, supra at 1434 n.15.                         
               Petitioners argue that although the South Point Road lot was           
          purchased by the Family Partnership, the partnership was never              
          fully implemented, and therefore, it should be disregarded.                 
          However, petitioners stipulated that the Family Partnership was             

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