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depreciation expense claimed on her 1989 Federal income tax
return relating to the properties.
Respondent alleges (and for purposes of acting on the
instant motion for summary judgment we assume) that during
settlement negotiations regarding the 1989 Fong case, petitioner
argued that the properties she received on liquidation of LY
Enterprises had a value of approximately $2 million and that the
Lily Partnership and petitioner properly used that figure in
computing the depreciable taxable bases of, and for computing
depreciation on, the properties.
In February of 1995, in the 1989 Fong case, petitioner and
respondent entered into an agreement to settle, among all other
issues, the issue regarding the proper depreciation expense to be
allowed for 1989 to the Lily Partnership and to petitioner
relating to the properties, and (we assume for purposes of
petitioner's motion for summary judgment) the proper total tax
bases of the properties.
On February 6, 1995, in the 1989 Fong case, petitioner and
respondent filed with this Court a stipulation of settled issues
reflecting, in pertinent part and with regard to the depreciation
issue that was settled, only the specific amount of the reduction
to petitioner’s claimed depreciation expense for 1989 relating to
the properties (namely $21,160).
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