- 2 -
greater than $355,000 (one-fourth the amount E had agreed G
was worth as of the date of M's death).
1. Held: P and E are in a sufficiently close legal
and economic relationship so that P is estopped by E's
representation, under the duty of consistency. Held,
further, P cannot increase her 1987 and 1988 NOL for previously
unclaimed depreciation and amortization deductions, because
she has failed to substantiate her entitlement to such
deductions.
2. Held, further, additions to tax under secs. 6651,
6653, and 6661, I.R.C., are sustained.
Kevin P. Kennedy and Elwood Cluck, for petitioner.
Steven B. Bass, for respondent.
PARR, Judge: Respondent determined deficiencies in and
additions to petitioner's Federal income tax for taxable years
1987 and 1988 as follows:
Additions to Tax
Sec. Sec. Sec. Sec.
Year Deficiency 6651 6653(a)(1)(A) 6653(a)(1)(B) 6661
1987 $7,013 $1,380 $620 1 $1,753
1988 35,574 13,398 2,856 -- 8,894
1 50 percent of the interest that is computed on the portion
of the underpayment which is attributable to negligence or
intentional disregard of rules and regulations.
Although petitioner filed joint returns with her husband,
Elwood Cluck (Elwood), Elwood is not a party herein because his
liability was determined and discharged in the U.S. Bankruptcy
Court for the Western District of Texas. Cluck v. United States,
165 Bankr. 1005 (W.D. Tex. 1993). After concessions,1 the issues
1 Respondent disallowed a medical expense deduction of $1,366
(continued...)
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