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or price concessions that a large buyer would expect
when buying "in bulk". In fact, as discussed above,
EPIC negotiated with the sellers of the properties various
"discounts" in the aggregate amount of approximately 20
percent of the contract price of the properties.
Furthermore, the tax returns filed on behalf of each
partnership compute the partnership's cost basis for
each property under section 1012 as the contract price
of the property less the rental deficit contribution for
that property and claim depreciation on the portion of the
cost that was allocated to the improvements. Petitioners
argue that the value of each of the subject properties is
equal to the contract price notwithstanding the fact that
each partnership paid a price that reflected discounts from
the contract price. Petitioners argue that such discounts
"do not reduce the underlying value of any one item
purchased".
Finally, petitioners argue that respondent's evidence
relating to the fair market value of the properties is
"rife with errors in assumptions and/or judgement and/or
application of concepts". Petitioners ask the Court to
conclude that respondent's evidence is biased and not
worthy of consideration.
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