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and equipment typically associated with ranches. Petitioner did
not see (or ask to see) any record pertaining to a Hoyt
partnership.
On July 15, 1988, petitioner signed a four-page document
memorializing his intent to buy two units in TBS at a total cost
of $7,000. The document (TBS document) included sections
entitled “SUBSCRIPTION AGREEMENT AND SIGNATURE PAGE”,
“CERTIFICATION”, “POWER OF ATTORNEY”, “FILING ACKNOWLEDGEMENT”,
and “PARTNERSHIP AGREEMENT”, and it referenced a section in the
partnership agreement entitled “Risk Factors”. The document
stated that petitioner, as a signer of the document, “recognizes
that even though the Partnership has a four year history of
operations and earnings, their [his] investment therein is a
speculative venture, and if they elect [he elects] to
participate, they [he] may lose the total amount of their [his]
investment.” Petitioner did not seek independent professional
advice as to the TBS document before signing it, opting instead
to rely upon the words and actions of his coworkers as to their
participation in one or more Hoyt partnerships. Later,
petitioner purchased interests in DSBS 87-C and TBS 89-1, without
signing any partnership document as to those purchases.
Petitioner knew at the time of his purchases that the Hoyt
partnerships advertised that his participation in a Hoyt
partnership allowed him to claim refunds of Federal income tax,
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