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December 31, 1987. However, the statement did not comply with
the requirements of Revenue Procedure 87-57, supra, or section
5h.5, Temporary Tax Reform Act of 1986 Election Regs., supra.
The only item of information Statement 2 provided was that the
type of property being depreciated was "RENTAL UNITS". The
statement did not say that Guaranteed made an election of the
income forecast method or of any other method of depreciation.
Nor did it refer to section 168(f)(1) or to any other provision
of the Code.
Petitioners rely on section 1.168-5(e)(3), Proposed Income
Tax Regs., 49 Fed. Reg. 5968 (Feb. 16, 1984). However, we note
that Guaranteed did not even meet the less stringent requirements
of section 1.168-5(e)(3), Proposed Income Tax Regs., supra,
assuming arguendo they were otherwise applicable. Section 1.168-
5(e)(3) provides:
(3) Manner of making elections. Except as provided in
subparagraph (5), Form 4562 is provided for making an
election under this paragraph and for submitting the
information required. The taxpayer must specify in the
election--
(i) The name of the taxpayer;
(ii) The taxpayer's identification number;
(iii)The year the recovery property was placed in
service (or, in the case of 15-year real property, the
month the property was placed in service);
(iv) The unadjusted basis of the recovery
property; and
(v) Such other information as may be required.
An election will not be rendered invalid so long as there is
substantial compliance, in good faith, with the requirements
of subparagraph (3).
Statement 2 did not provide the year the rental property was
placed in service--in the "Date Acquired" column, Statement 2
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