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Respondent issued a notice of deficiency (notice) to pe-
titioners for their taxable years 1993 and 1994. In that notice,
respondent determined, inter alia, that (1) petitioners realized
long-term capital gain in the amount of $48,193 for 1994, which
resulted from the reduction in petitioners' share of the Second
Street loan and (2) that petitioners are liable for 1993 and 1994
for the accuracy-related penalty under section 6662(a).
OPINION
Petitioners bear the burden of proving that respondent's
determinations in the notice are erroneous. See Rule 142(a);
Welch v. Helvering, 290 U.S. 111, 115 (1933).
The parties agree that petitioners must recognize $48,193 of
long-term capital gain pursuant to sections 752(b), 731(a), and
741 for the year in which Mr. McDaniel was relieved of his
liability as a guarantor of the Second Street loan. The parties
disagree as to the year in which Mr. McDaniel was relieved of
that liability. Petitioners contend that Mr. McDaniel was
discharged in 1993 from his liability as a guarantor of the
Second Street loan. Respondent contends that he was discharged
from that liability in 1994.
In support of their position, petitioners rely on Fla. Stat.
Ann. sec. 620.735(2) and (3) (West 1992) (repealed effective Jan.
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