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with respect to that part of the underpayment resulting from
respondent’s NOL carryforward adjustment.
As to petitioners’ disallowed 1992 and 1993 depreciation
expenses from the 5401-9 S. Broadway property, the record
reflects that Mr. Collins visited the property many times over
the years, was familiar with the configuration of the building,
and was aware that not all the building was being used for rental
purposes by petitioner during 1992 and 1993. Nevertheless, Mr.
Collins computed depreciation with respect to 5401-9 S. Broadway
for 1993 and prior years by taking into account the entire
building. When questioned about this inconsistency, Mr. Collins
explained that the entire property, at one time, had been
available for rental.
In addition, although some of petitioners’ claimed Schedules
C and E expenses for 1992 and 1993 from the 5401-9 S. Broadway
property were not substantiated at trial, Mr. Collins testified
that petitioners had receipts and documents substantiating all
these claimed expenses.
We are satisfied that petitioners relied upon their
accountant to compute their annual depreciation expenses and to
decide whether the expenses claimed on their Schedules C and E
from the 5401-9 S. Broadway property were deductible. In light
of petitioners’ lack of tax training and their attempts to obtain
competent professional help, we are also satisfied that
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