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leasehold, the amount so allocable will be $16 million.6 Because
we have found that the 1975 Lease, being a class III asset as
defined by section 1.1060-1T(d)(2), Temporary Income Tax Regs.,
53 Fed. Reg. 20740 (July 18, 1988), was a premium lease, it
follows that a portion of the price petitioner paid to acquire
the Saints is allocable thereto.
The $16 million figure was the result of compromises by both
sides and was agreed to with full knowledge of the relevant
facts. Accordingly, we shall give the stipulation binding effect
in accordance with Rule 91(e), see Louisiana Land & Exploration
Co. v. Commissioner, 90 T.C. 630, 648-649 (1988), and find that
petitioner may allocate $16 million of the price it paid to
acquire the Saints to its Superdome leasehold.
To reflect the foregoing,
Decision will be
entered under Rule 155.
6The specific language of the stipulation is as follows:
If any portion of the purchase price paid by
Petitioner for the Saints is properly
allocable to the Superdome Lease, the amount
so allocable is $16 million, as reported in
Petitioner's federal income tax returns.
The stipulation defines the term "Superdome Lease" as "the 1975
Lease as amended from time to time."
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