Investment Research Associates - Page 376




                                       - 432 -                                         
               The Court agrees with Kanter on this issue.  The Kanters'               
          1977 tax year was the subject of docket No. 12282-82 before this             
          Court, in which a stipulated decision was entered on March 12,               
          1991.  That decision was based upon a Stipulation of Settled                 
          Issues which was filed with the Court.  The Stipulation of                   
          Settled Issues provided as follows:                                          
                    Solely for the purpose of narrowing the issues in                  
               [docket no. 12282-82], the Petitioner * * * and the                     
               Respondent have settled issues relating to the                          
               Petitioner's direct or indirect investment in one or                    
               more of the following partnerships, namely, Ambassador                  
               Associates, Empire Properties, Shelburne Associates,                    
               Whitehall Associates, Balmoral Associates, Drake                        
               Associates, FF Associates, Park Lane Associates and                     
               Warwick Associates on the following basis to the extent                 
               applicable to the year(s) before the Court in this                      
               case:                                                                   
                    1.  Except as provided in this agreement, no item                  
               of income, gain, loss, deduction or credit arising from                 
               the Petitioner's interest in the partnership, shall be                  
               realized and recognized in any taxable year.  It is                     
               understood by the parties that this agreement does not                  
               apply to items of income, gain, loss, deduction or                      
               credit from Empire Properties' investment in NST                        
               Investors.                                                              
                    2.  The Petitioner's total cash investment                         
               actually or constructively paid shall be allowable as                   
               an ordinary deduction in three equal parts over three                   
               successive years starting with the initial year for                     
               which the Petitioner first claimed a partnership                        
               deduction, provided that the Petitioner includes in                     
               income any cash constructively received with respect to                 
               such contribution in the year of such constructive                      
               receipt.                                                                
                    3.  All partnership distributions from the                         
               partnership to the Petitioner shall be includable as                    
               ordinary income in the year of receipt.                                 







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