Couple Disputes Disallowance Of Capital Loss Carryovers.

JOHN H. HEGER, INDIVIDUALLY, AND

====== SUMMARY ======

John Heger and the estate of Janet Heger are challenging the IRS' disallowance of their short term capital loss carryovers and their long term capital loss carryovers for the years 1988 and 1989.

The couple claims that in 1987 they sustained capital losses in an amount not determinable at this time "due to the pendency of a case involving the 1987 year." However, they contend that once the amount of these losses are determined, they will be available as carryovers to the years 1988 and 1989.

Period and Amount at Issue: 1988 -- $1,217; 1989 -- $830

Code Section Classification: 1212, 1232

====== FULL TEXT ======

PETITION

The Petitioners hereby petition for a redetermination of the deficiency set forth by the Commissioner of Internal Revenue in a notice of deficiency, Letter 893(RO)-C, dated February 23, 1993, and as basis for their cause allege as follows:

1. Petitioner is an individual and the duly qualified Independent Executor of the Estate of Janet M. Heger, deceased. At the time of filing their Federal Income Tax Returns for the periods here involved Petitioner and Janet M. Heger were husband and wife, husband (SS# * * * ) and wife, (SS# * * * ). Petitioner resides at 14815 Chadbourne, Houston, Texas 77079-6314. The returns for the periods here involved were filed with the Office of the Internal Revenue Service at Austin, Texas.

2. The notice of deficiency, a copy of which is attached hereto and marked as Exhibit "A", was mailed to Petitioners on February 23, 1993, and was issued by the Office of Internal Revenue Service, District Director, Houston District, Houston, Texas.

3. The deficiency as determined by the Commissioner is in income taxes for the calendar year in the amounts as follows:

         Tax Year                      Increase

The entire amount of such deficiencies for 1988 and 1989 are in dispute.

4. The determination of tax set forth in said notice of deficiency is based on the following errors.

(a) The Internal Revenue Agent erroneously disallowed short

5. The facts upon which the Petitioners rely on as the basis for this case are as follows:

(a) For the year ended December 31, 1987, Petitioner and

WHEREFORE, Petitioners pray that this Court hear the proceedings and determine that there is no deficiency from Petitioners for the calendar year 1988 and 1989 and for such other and further relief to which Petitioners may show themselves entitled.

RESPECTFULLY SUBMITTED on the 5th day of April, 1993.

GROOM & GROOM, P.C.

By: RUDY M. GROOM

ATTORNEY FOR PETITIONERS