Estate of Burton W. Kanter, Deceased, Joshua S. Kanter, Executor, and Naomi R. Kanter, et al. - Page 364

                                                -421-                                                   
           computer leasing field and the pertinence of such experience to                              
           determine the potential [of the] transactions for profit.”                                   
                 Respondent, on the other hand, contends that petitioners                               
           failed to carry their burden of proof under Rule 142(a).                                     
           B.  Analysis                                                                                 
                 Petitioners failed to meet their burden of proof on this                               
           issue.  Petitioners offered no substantive evidence regarding                                
           Equitec’s computer leasing transactions.  Petitioners’ legal                                 
           arguments on brief are no substitute for evidence relating to                                
           Equitec’s transactions.  For instance, even assuming for the sake                            
           of argument that Kanter’s prior experience in similar investments                            
           may be a relevant factor to be considered in determining whether                             
           Equitec had an actual and honest profit objective, that factor                               
           alone is far from dispositive.  See sec. 1.183-2(b), Income Tax                              
           Regs.  Consequently, the Court sustains respondent’s                                         
           determination on this issue.  See Rule 142(a).                                               
           Issue XVII.  Whether the Kanters Are Entitled to an Investment                               
                       Interest Expense Deduction for 1981 (STJ report at                               
                       167-168)163                                                                      
           On their 1981 income tax return, the Kanters deducted                                        
           $45,095 identified as investment interest expense related to GLS                             
           Associates.  Respondent disallowed this deduction in the notice                              
           of deficiency, which stated in pertinent part:                                               


                  163  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.                                    




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