Robert Gottsegen - Page 29

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               Lindstrom's statements of his opinion and the basis for it             
          were reasonable and persuasive, and we rely heavily on his expert           
          report and testimony in making our finding of fact regarding                
          valuation.                                                                  
               Grossman did not specifically value the Sentinel EPE                   
          Recycler.  However, Grossman concluded that existing technology             
          was available that provided equivalent capability of recycling              
          polyethylene.  We found Grossman to be an impressive witness, and           
          we also rely heavily on his expert report and testimony in making           
          our finding of fact regarding valuation.                                    
               We have found as an ultimate fact that the Sentinel EPE                
          recycler purchased by petitioner in 1981 did not have a fair                
          market value at that time in excess of $50,000.7  Having so                 
          found, it follows that the adjusted basis of the Sentinel EPE               
          recycler claimed by petitioner on his returns is by definition              
          overstated within the meaning of section 6662(e).                           
               2.   The Sentinel EPS Recyclers                                        
               In order to establish the fair market value of the Sentinel            
          EPS recyclers, respondent also presented the testimony and expert           
          witness reports of Grossman and Lindstrom.                                  




               7 We observe that our finding is consistent with the finding           
          in Provizer v. Commissioner, T.C. Memo. 1992-177, affd. without             
          published opinion 996 F.2d 1216 (6th Cir. 1993), regarding the              
          fair market value of the Sentinel EPE recycler.                             





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