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The expert report computes comparable values of 300 Gulf
Boulevard using the three comparable properties as follows:
Comparable Comparable Comparable
No. 1 No. 2 No.3
Sale date 5/93 1/93 9/92
Sale price $500,000 $560,000 $600,000
Adjustments 40,400 -19,900 -19,300
Comp. value 540,400 540,100 580,700
of Subject
We have carefully considered all of the evidence presented
and have relied more on evidence determined to be more
persuasive. Specifically, we find comparable No. 2 to be the
most persuasive evidence of the value of 300 Gulf Boulevard. We
find that the fair market value of 300 Gulf Boulevard at the time
of the transfer to Mr. Salem in December of 1990 was no greater
than $540,100.
On the basis of that valuation, we hold that the Salems did
not fail to report gain in 1990 on the distribution of the
property to Mr. Salem.
3. Accuracy-Related Penalty
Respondent's determination of the accuracy-related penalty
for negligence under section 6662(b)(1) with respect to the
Salems pertains only to the omission from their 1990 income tax
return of the Gulf Properties distribution of 300 Gulf Boulevard.
Since we have held that the Salems did not fail to report gain
from the distribution, it follows that they are not liable for
the accuracy-related negligence penalty for 1990.
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