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regarding such benefits.
G. Ultimate Finding Regarding Petitioner’s Motivation
Petitioner invested in Whitman principally because the
investment offered immediate tax benefits in excess of his
investment.
H. Events Leading to the Filing of Petitioners’ 1982 Return
Early in 1983, petitioner received from Sam Winer a Schedule
K-1 (Partner’s Share of Income, Credits, Deductions, etc.) for
the Whitman partnership for the taxable year 1982. The Schedule
K-1 disclosed that petitioner’s share of Whitman’s loss for 1982
was $11,852 and that petitioner’s share of the partnership’s
basis in the 4 EPS recyclers for investment credit purposes was
$116,200. Although these amounts were actually consistent with
the tax benefits promised in the offering memorandum, petitioner
was sensitive to their magnitude and mindful of the fact that
they might flag his investment as a tax shelter. Petitioner was
also uncertain how to convert his share of the partnership’s
basis in the recyclers into the regular investment tax credit and
the energy tax credit on his individual return. Accordingly,
petitioner contacted a certified public accountant for
assistance.8
The accountant that petitioner contacted was unable to help
8 Petitioner did not contact his brother because petitioner
did not disclose personal financial information to him.
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