Robert P. Neumann and Sally A. Neumann - Page 11

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             determined to be the correct amount of such valuation or adjusted                                    
             basis (as the case may be).  Sec. 6659(c).  In the instant case,                                     
             respondent determined that the value claimed was more than 250                                       
             percent of the correct value, and therefore the applicable                                           
             percentage was 30.                                                                                   
                    In an affected items proceeding, res judicata precludes the                                   
             relitigation of any issue resolved in the partnership proceeding,                                    
             including the value or basis of partnership assets.  N.C.F.                                          
             Energy Partners v. Commissioner, 89 T.C. 741, 747 (1987).  As                                        
             stated, this Court has decided that the adjustments in the                                           
             related partnerships proceedings for 1984 are correct as to the                                      
             Alamo partnerships as set forth in the FPAA's.  Thus the bases of                                    
             Alamo East Enterprises and Alamo East Enterprises 1984 are "0"                                       
             and "0", instead of $500,000 and $5,458,450, as claimed by the                                       
             respective partnerships for 1984.  The respondent determined that                                    
             $12,846 was an amount attributable to a valuation overstatement                                      
             for 1984.  On this record we find that petitioners did not meet                                      
             their burden to prove that respondent's determination was wrong.                                     
             Accordingly, we sustain respondent's determination as to 1984 on                                     
             this issue.  For 1981, respondent's determination is the result                                      
             of an investment tax credit carryback from 1984 due to the                                           
             valuation overstatement.  We therefore sustain the addition to                                       
             tax for the valuation overstatement for 1981.                                                        







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