Theresa Salopek, et al. - Page 6

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          in both law and fact.  Pierce v. Underwood, 487 U.S. 552, 563-565           
          (1988).  This Court will determine the reasonableness of                    
          respondent's position as to each issue independently and                    
          apportion the requested award between those issues for which                
          respondent was, and those issues for which respondent was not,              
          substantially justified.  See, e.g., Swanson v. Commissioner, 106           
          T.C. 76, 87-92 (1996).  Respondent concedes that his position               
          with respect to the cash contributions was not substantially                
          justified.                                                                  
               A.   Depreciation Deductions                                           
               Respondent contends that he was substantially justified in             
          disallowing Salopek's depreciation deductions because petitioners           
          failed to provide the necessary substantiation.  During the                 
          examination, petitioners provided Agent Parker with Salopek's FY            
          1993, FY 1994, and FY 1995 depreciation schedules, each of which            
          delineated more than 100 assets.  After reviewing the schedules,            
          Agent Parker requested that petitioners substantiate the                    
          depreciable bases of only three assets--certain pecan trees                 
          placed in service during 1988, 1991, and 1992.  Petitioners did             
          not provide Agent Parker with the requisite substantiation.                 
          Respondent then disallowed all of Salopek's depreciation                    
          deductions.  When respondent ultimately received the                        
          substantiation for the pecan trees, however, he conceded the                
          issue.  Respondent's position with respect to the pecan trees was           
          substantially justified.  Respondent's position with respect to             




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