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appraisal” made by a “qualified appraiser” and (2) in addition to
obtaining such an appraisal, the taxpayer made a good faith
investigation of the value of the contributed property. See sec.
6664(c)(2) and (3).
Qualified appraisers and qualified appraisals are defined
under the regulations in section 170(a)(1). See sec. 6664(c)(3);
sec. 1.170A-13(c)(3), Income Tax Regs. Among the items of
information to be included on a qualified appraisal is the method
of valuation used to determine fair market value and the specific
basis for the valuation, such as comparable sales or statistical
samples. See sec. 1.170A-13(c)(3)(ii)(J) and (K), Income Tax
Regs. As we indicated above, neither the Brueggemann inventory
nor Malina’s 1993 appraisal set forth a methodology or any
meaningful analysis of fair market values expressed in each
report. Moreover, we are not persuaded that petitioner acted in
good faith, because his conduct with respect to the contributed
property was not consistent with a belief that it had substantial
value. Thus, the reasonable cause exception does not apply, and
petitioner is liable for the accuracy-related penalty of section
6662(h) for a gross valuation misstatement.
To reflect the foregoing,
Decision will be entered
for respondent.
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