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request (IDR) to petitioner. Question four of that IDR states:
“Who is the owner of the Atrium now? History of the Atrium
ownership from 1985 till 1992?” In response to that question,
petitioner stated, in part:
On December 30, 1988, Lincoln Building Corporation sold
an undivided 48% interest in the Atrium to ARICO
America Real Estate Investment Company (ARICO). ARICO
contributed its undivided 48% interest in the Atrium to
Broadway Atrium Limited (Broadway). Broadway
subsequently contributed the 48% undivided interest in
the Atrium to Lincoln Atrium Limited. Lincoln Building
Corporation contributed an additional .48% undivided
interest in the Atrium to Lincoln Atrium Limited as its
general partner. Consequently, ownership of the Atrium
after the sale on December 30, 1988 was as follows:
51.52% - Lincoln Building Corporation
48.48% - Lincoln Atrium Limited, whose ownership
is:
99% - Broadway Atrium Limited
1% - Lincoln Building Corporation
The ownership of the Atrium did not change during the
period between December 30, 1988 and December 31, 1992.
On April 22, 1993, the IRS agent issued another IDR to
petitioner requesting documentation pertaining to the sale of an
interest in the Atrium referred to in petitioner's response to
the first IDR. Petitioner's response to the second IDR referred
to the transaction as a “sale of the 48% interest in the Atrium”.
B. The Atrium Assets: Allocation of the Costs
1. Issue
The issue is whether petitioner may allocate the cost of the
Atrium Assets to the bases of other properties that were held by
the Bank. If we decide that issue for petitioner, we must decide
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