Bentley Court II Limited Partnership, B.F. Bentley, Inc., Tax Matters Partner - Page 14

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               or all the elements of a technical estoppel.  It arises                
               rather from the duty of disclosure which the law puts on               
               the taxpayer, along with the duty of handling his                      
               accounting so it will fairly subject his income to                     
               taxation.”  [Interlochen Co. v. Commissioner, 232 F.2d                 
               873, 878 (4th Cir. 1956), affg. 24 T.C. 1000 (1955)                    
               (quoting Wichita Coca Cola Bottling Co. v. United                      
               States, 152 F.2d 6, 8 (5th Cir. 1945))].                               
               Bentley Court represented on its 1990 through 1992 returns             
          that it qualified for low-income housing credits.  It generally             
          claimed compliance with section 42 and did not provide its                  
          reasoning for claiming the credit.  It is obvious from the record           
          we consider that the criminal matter had to do with                         
          misrepresentations and/or concealment of facts on Bentley Court’s           
          behalf by Lewis.  Accordingly, Bentley Court’s “mistake of law”             
          argument has no basis in this record and is not worthy of further           
          consideration.  See Interlochen Co. v. Commissioner, supra.                 
          Accordingly, we reject Bentley Court’s alternative argument.                
               Bentley Court has conceded that it does not qualify for low-           
          income housing credits for 1993.  Accordingly, the apartment                
          building’s qualified basis was thus zero at the end of 1993.  In            
          addition, Bentley Court is estopped to deny that the 1992 yearend           
          qualified basis was less than $11,537,221.  Because the qualified           
          basis at the end of 1993 was less than the qualified basis at the           
          end of 1992, Bentley Court is subject to recapture in 1993.  See            
          sec. 42(j).                                                                 








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