- 595 -
and introduced no evidence regarding his liability for additions
to tax or the increased interest rate of section 6621(c). The
Court has determined that the SLG transaction was a tax-motivated
transaction under section 6621(c). See HGA Cinema Trust v.
Commissioner, supra. Therefore, any underpayment resulting from
this adjustment or from any credits claimed from the SLG
transaction for the 1980 year is attributable to tax-motivated
transactions within the meaning of section 6621(c).
With respect to 1983 and 1986, Kanter introduced no evidence
that respondent erred in determining that the underpayments
resulting from the Schedule E computer adjustment of $83,333 for
1983 and Schedule E interest expense adjustment of $50,380 for
1986 were attributable to tax-motivated transactions. Therefore,
any underpayments resulting from these adjustments are
attributable to tax-motivated transactions within the meaning of
section 6621(c).
The capital gains and losses adjustment of $569,555 for 1983
relates to the sham transaction involving Cashmere. In the
Cashmere transaction, Kanter's liability for the increased
interest rate is established essentially by the sham nature of
the scheme wherein his primary objective was to sell his real
estate partnership interests and receive cash therefor while, at
the same time, escaping the recognition of gains associated with
the negative capital accounts inherent in such interests.
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