El Charro TV Rental, Inc., Diana L. Peters, Tax Matters Person - Page 8

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          currently before the Court than was used for the years involved             
          in the factual pattern for El Charro I.  Petitioner further                 
          contends that the El Charro I opinion is binding for rental units           
          placed in service during 1987 and 1988, but that it is not                  
          binding for the 1989 and 1990 years now before the Court.                   
          Petitioner also contends that she met her burden of proof                   
          referred to in the El Charro I opinion as to the accurate use of            
          the floating method to measure useful life of rental units.                 
               We disagree with petitioner’s interpretation of this Court’s           
          above-quoted opinion.  The holding in that case is that the                 
          income forecast method may not be used for the type of asset used           
          in El Charro's business.  In the paragraph relied upon by                   
          petitioner, the Court is explaining that, in addition to the                
          rental property’s not being legally appropriate for use of the              
          income forecast method, as a factual matter, the calculation                
          method used for those years to compute the amount of depreciation           
          did not comport with the principles underlying the income                   
          forecast methodology.  In addition, the parties’ stipulation                
          agreement would permit consideration of whether petitioner                  
          factually qualified for use of the income forecast method only if           
          it were decided that such method was available for use with                 
          respect to the rental assets.                                               
               The Court of Appeals for the Tenth Circuit describes the               
          issue in the earlier consolidated cases as “a legal issue                   

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