Danny K. Eldridge and Elma J. Eldridge - Page 2

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          August 14, 1995, we decided that petitioners engaged in their               
          cattle-raising activity for profit and that certain depreciation            
          deductions claimed by petitioners were allowable for tax years              
          1987, 1988, and 1989.  In addition, we found that petitioners               
          were liable for negligence and substantial understatement                   
          additions to tax to the extent provided in our opinion.  Finally,           
          we held that petitioners were not liable for the increased rate             
          of interest due on a substantial understatement attributable to a           
          tax-motivated transaction under section 6621(c).  Eldridge v.               
          Commissioner, T.C. Memo. 1995-384.  Our findings of fact and                
          opinion in the underlying case are incorporated by this                     
               Section 7430 provides, inter alia, that, in any                        
          administrative or court proceeding brought by or against the                
          United States in connection with the determination, collection,             
          or refund of any tax, interest, or penalty, the prevailing party            
          may be awarded reasonable administrative costs and litigation               

          and Procedure, and all section references are to the Internal               
          Revenue Code unless otherwise indicated.                                    
          2    Although petitioners moved the Court for an award of both              
          litigation and administrative costs, the statement of costs                 
          claimed by petitioners, which was attached to the motion as                 
          required by Rule 231(b)(8), indicates that the costs were                   
          incurred in connection with the filing of the petition and                  
          thereafter.  Accordingly, we treat petitioners' motion as a                 
          motion solely for litigation costs.  See Huffman v. Commissioner,           
          T.C. Memo. 1991-144, affd. in part, revd. in part, and remanded             
          978 F.2d 1139 (9th Cir. 1992).                                              

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