David L. Kennedy (88-1254) v. Commissioner of Internal Revenue, Joseph D. Auberger and Wanda Auberger (88-1255) v. Commissioner of Internal Revenue

RALPH B. GUY, Jr. Circuit Judge.

Petitioners David L. Kennedy and Joseph and Wanda Auberger appeal the United States Tax Court’s decision finding them liable for 1978 and 1979 tax deficiencies. The petitioners claim that the Tax Court erred by (1) disallowing their mining expense deductions as a consequence of its erroneous finding that the gold mining tax shelter in which they invested was a sham entered into for tax rather than profit motives, and (2) procedurally prejudicing their case. We find that the petitioners’ claims lack merit and, accordingly, affirm the Tax Court’s determinations.

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