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Without addressing the merits of either party’s position, we deem
petitioners to have conceded that they received as boot the
smaller amount of $67,000, as determined by respondent. Cf.
Barker v. Commissioner, 74 T.C. 555 (1980).
3. Conclusion
Petitioners’ adjusted basis in the 116th East Ave. property
immediately after the exchange was $78,168 ($134,500 carryover
basis in the 84th Street property less $67,000 boot received in
the exchange, plus the $10,668 in closing costs that respondent
concedes should be added to the basis). The parties having
raised no other dispute regarding petitioners’ allowable 1995
depreciation deductions with respect to this property or
regarding the amount of petitioners’ loss on the 1996 sale of
this property, respondent’s determinations as to these issues are
sustained.
B. Accuracy-Related Penalty
Respondent determined that petitioners are liable for the
accuracy-related penalty under section 6662. Section 6662(a)
imposes a 20-percent penalty on any portion of an underpayment
that is attributable to, among other things, negligence or
disregard of the rules or regulations. Negligence is the lack of
due care or failure to do what a reasonable and ordinarily
prudent person would do under the same circumstances. See Neely
v. Commissioner, 85 T.C. 934 (1985).
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