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valuation overstatements. Krause v. Commissioner, 99 T.C. 132,
178 (1992) (citing Todd v. Commissioner, supra), affd. sub nom.
Hildebrand v. Commissioner, 28 F.3d 1024 (10th Cir. 1994).
However, when valuation is an integral factor in disallowing
deductions and credits, section 6659 is applicable. See Illes v.
Commissioner, 982 F.2d 163, 167 (6th Cir. 1992), affg. T.C. Memo.
1991-449; Gilman v. Commissioner, 933 F.2d 143, 151 (2d Cir.
1991) (section 6659 addition to tax applies if a finding of lack
of economic substance is "due in part" to a valuation
overstatement), affg. T.C. Memo. 1989-684; Masters v.
Commissioner, T.C. Memo. 1994-197, affd. without published
opinion 70 F.3d 1262 (4th Cir. 1995); Harness v. Commissioner,
T.C. Memo. 1991-321.
In the stipulation of settled issues, Snyder concedes that
he is not entitled to any deductions, losses, investment credits,
business energy investment credits, or any other tax benefits
claimed on his tax returns as a result of his being a partner in
SAB Recovery and SAB Reclamation. In Todd v. Commissioner,
supra, and McCrary v. Commissioner, supra, we denied application
of section 6659, even though the subject property was overvalued,
because the related deductions and credits had been conceded or
denied in their entirety on other grounds. In Todd, we found
that an underpayment was not attributable to a valuation
overstatement because the subject property was not placed in
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