- 8 -
(9th Cir. 2001), revg. and remanding Estate of Kaufman v.
Commissioner, T.C. Memo. 1999-119.
In the case at hand, the notice of deficiency does not
segregate the portion of the excess rental expense disallowance
attributable to each property for each year. We are therefore
unable to determine, on a property-by-property basis, whether the
appraisals of respondent’s expert, Mr. Harris, are consistent
with the determinations contained in the notice of deficiency.
Section 7491 shifts the burden of proof to the Commissioner
if certain requirements are met. However, section 7491 applies
only to court proceedings arising in connection with examinations
commenced after July 22, 1998. RRA sec. 3001(c), 112 Stat. 727.
Neither party offered evidence to show whether the audit in the
case at hand was commenced before July 23, 1998. However,
respondent claimed in his pretrial memorandum that the audit was
commenced before July 23, 1998, and petitioner in its opening
brief appears to accept respondent’s allegation by asserting that
it has met its burden of proof.
Both parties introduced evidence as to the fair market
rental values of the Watt Avenue, Mother Lode Drive, and Fee
Drive properties. The case at hand is not one of those rare
cases in which the weight of the evidence adduced by the parties
is in equipoise. We will therefore determine the fair market
rental values of these properties on the basis of the
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011