-420-
Issue XVI. Whether the Kanters Are Entitled to Losses From
Equitec for 1983 and 1984 (STJ report at 165-167)162
On their 1983 and 1984 income tax returns, the Kanters
claimed losses of $83,333 and $161,727, respectively, from an
entity named Equitec. Respondent disallowed the Equitec losses.
OPINION
A. The Parties’ Arguments
Although petitioners offered little, if any, evidence
concerning the computer leasing transactions they contend Equitec
entered into, petitioners argue that “respondent has failed to
recognize the evidence of record regarding the experience of
Kanter vis-a-vis equipment leasing transactions [of other
entities] and the issues of Equitec before this Court.”
Petitioners maintain that Equitec’s transactions should be
reviewed “de novo * * * based upon the testimony and evidence
offered regarding the extensive activity of petitioners in the
161(...continued)
petitioners did not agree any additions to tax should be imposed
with respect to these conceded adjustments.
162 The STJ report recommended holding that respondent is
barred from making any determination concerning the taxable year
1983 on account of the expiration of the period of limitations
governing assessment and collection for that year. As previously
discussed, we determined that Kanter’s income tax returns for the
years at issue were fraudulent, and, therefore, the period of
limitations remains open pursuant to sec. 6501(c)(1).
The foregoing aside, the Court’s disposition of this issue
represents in large measure a wholesale adoption of the
recommended findings of fact and conclusions of law set forth in
the STJ report with regard to the taxable year 1984.
Page: Previous 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 NextLast modified: May 25, 2011