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1. Whether petitioners may deduct in 1992 $33,192.20 in
rent that petitioner prepaid in 1992 for 1993 and 1994. We hold
that they may not.
2. Whether, under the mitigation rules, sections 1311-
1314, petitioners may deduct in 1993 and 1994 rent that
petitioner prepaid in 1992. We hold that we lack jurisdiction to
decide this question because the only notice of deficiency
petitioned in this case is for 1992.
3. Whether petitioners are liable for the addition to tax
under section 6651(a)(1) for 1992. We hold that they are.
Section references are to the Internal Revenue Code in
effect for the years in issue. Rule references are to the Tax
Court Rules of Practice and Procedure.
FINDINGS OF FACT
Petitioners lived in Indianapolis, Indiana, when the
petition was filed. They used the cash method of accounting in
1992. Petitioner is an attorney and certified public accountant.
He was a sole practitioner in 1992.
On June 27, 1989, petitioner and 50 South Meridian
Associates, Ltd. (the landlord) signed a 5-year lease for about
1,200 square feet of business space. The lease provided that
petitioner would pay rent of $564.75 per month for the first 12
months (August 1, 1990, to July 31, 1991); $1,637.67 per month
for the next 36 months (August 1, 1991, to July 31, 1994); and
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