Reg. § 1.1234-3(b)(1). Each option has its own identity and is a separate asset from all other options, so the holding period of an option does not relate back to prior option contracts. Reily v. Commissioner, 53 T.C. 8, 12 (1969). The time factor goes to the very essence of options contracts.

The taxpayer has the burden of proving that he acted with reasonable cause and in good faith. Rule 142(a); Reilly v. Commissioner, 53 T.C. 8, 14 (1970). At trial Mr. Chambers provided credible testimony that he devoted a significant amount of time to the rental activities of the San Diego and CMB Capital properties.

Such determination is presumptively correct. Reily v. Commissioner, 53 T.C. 8 (1969). Lilley has not met her burden of proving that no part of her underpayment was due to negligence or intentional disregard of rules and regulations.

Such determination is presumptively correct. Reily v. Commissioner, 53 T.C. 8 (1969). Lilley has not met her burden of proving that no part of her underpayment was due to negligence or intentional disregard of rules and regulations.

The Commissioner's determination that some part of the underpayment for 1969 was due to negligence or intentional disregard of rules and regulations is presumably correct. James S. Reily, 53 T.C. 8, 14 (1969). The absence of evidence (as opposed to mere arguments) on this issue falls adversely on the petitioner.

Since he has failed to offer proof on this issue or even raise it in his brief, we sustain the Commissioner's determination as to the additions to tax. Rule 149(b), Tax Court Rules of Practice and Procedure; see James S. Reily, 53 T.C. 8 (1969); James W. England, Jr., 34 T.C. 617 (1960). Decision will be entered under Rule 155.

With respect to the option clause itself it is fundamental that an option is a contract which gives the optionee the right to buy, sell, lease, or the like within a certain period of time.James S. Reily, 53 T.C. 8, 12 (1969). In certain aspects, an option may be deemed "property" in the hands of the option holder.

With respect to the option clause itself it is fundamental that an option is a contract which gives the optionee the right to buy, sell, lease, or the like within a certain period of time. James S. Reily, 53 T.C. 8, 12 (1969). In certain aspects, an option may be deemed ‘property’ in the hands of the option holder.

Since they have failed to prove that the respondent's determination is erroneous, or even to clarify the issue, they must suffer the consequences. James S. Reily, 53 T.C. 8 (1969); James W. England, Jr., 34 T.C. 617 (1960). See also Journal Co., 46 B.T.A. 841 (1942), reversed on another ground 134 F.2d 165 (C.A. 7, 1943).