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Issue 16. Whether the Kanters Are Entitled to an Investment Tax
Credit Carryover for 1978
OPINION
On their 1978 income tax return, the Kanters claimed a
$120,566 investment tax credit carryover, which respondent
disallowed in the notice of deficiency.
The Kanters contend that their entitlement to the 1978
investment tax credit carryover is purely "computational" under
Rule 155. The Kanters assert, in pertinent part:
The issue of whether Kanter is entitled to a
carryover of investment tax credit from his 1977 year
to his 1978 year is purely computational. The
resolution of this issue is entirely dependent upon the
resolution of Kanter's Tax Court case involving his
1977 year (docket No. 12282-82), which was previously
docketed and decided by this Court. Although
respondent * * * [in proposed findings] states that
petitioners failed to address this issue, that is not
the case. Respondent's counsel stipulated on the
record that petitioners had addressed all of the issues
raised in respondent's notice of deficiency. * * *
Since this issue is purely computational, and
respondent is well aware of the terms of the resolution
of Kanter's 1977 tax liability, the amount of the
carryover from 1977 to 1978 will be addressed in the
eventual Rule 155 proceeding in this matter, and need
not be addressed by the Court at this time.
The "stipulation" referred to is the discussion that took place
between the Court, petitioners' counsel, and the supervisor of
respondent's counsel concerning the parties' settlement of a
number of other adjustments from the years in issue.
Respondent, on the other hand, contends that Kanter failed
to carry his burden of proof under Rule 142(a).
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