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sole purpose of enabling IRA to claim tax deductions. IRA made
use of intermediary companies in an attempt to avoid the at-risk
rules of section 465.
D. Miscellaneous Additional Facts Generally Applicable to the
Transactions
Neither IRA nor its advisers attempted to obtain an opinion
of the fair market value, the residual value, or the useful life
of the equipment from a party unrelated to the proposed
transactions.
Due to the large number of equity participation transactions
previously arranged by Mallin for O.P.M., the transactional
documents were essentially reduced to form documents whose terms
were the subject of little or no negotiation. All of the
transactions at issue fit the same pattern.
There were no third-party records which referred to IRA as
the owner or purchaser of the equipment. By the beginning of the
taxable year ended December 31, 1987, IRA no longer possessed the
right, title, and interest to the equipment for which it claimed
deductions and credits for computer leasing transactions for the
years 1977 through 1986.
III. The Specific Leasing Transactions
A. Cedilla Invest.-1976 Domestic (O.P.M. Transaction)
Cedilla Invest. purportedly purchased computer leasing
equipment from O.P.M. and leased the equipment back to O.P.M. in
a "bill of sale" dated October 14, 1976, and a Purchase Agreement
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