Steve was a farmer who conducted his farming business as a sole proprietor. Julie, his wife, was employed full time by an insurance company as a claims representative. Steve died on March 13, 2011. Steve incurred certain expenses in 2010 for the purchase of seed, chemicals, fertilizer, and fuel, inputs which he planned to use in his farming business in connection with planting crops in 2011. He died before he was able to use any of these farm inputs. The farm inputs were listed in the inventory of Steve's assets prepared by his estate, with the inputs' stated fair market value being equal to their purchase price. Upon his death in 2011 all of his interest in the farm inputs passed to the Backemeyer Family Trust, of which Julie was a trustee. Julie was appointed personal representative of the Estate. Julie became actively involved in farming to grow corn and soybeans on the farm real estate. During 2011 she took an in-kind distribution of the farm inputs from the Family Trust and used all of the inputs to grow corn and soybeans. The seed corn was planted in 2011. The chemicals and fertilizers and lime were applied in connection with growing corn and soybeans in 2011. And the diesel fuel was used to operate farm equipment and semitractor trucks during the 2011 crop year. During 2011 she sold a portion of the crops grown that same year using the farm inputs and received taxable proceeds of $301,100. She did not claim any tax basis in the crops sold. In 2012, she sold the balance of the crops grown in 2011 and received taxable proceeds of $758,301. She did not claim any tax basis in the crops sold in 2012. In her 2011 return, Julie (P) deducted the inputs that Steven had already deducted in 2010. Denial of these deductions would increase taxable income for 2011 by $235,693. The Commissioner (D) determined a deficiency of $78,387 and issued a notice of deficiency dated February 5, 2014. D explained that 'it has not been established that more than $80,249 was verified as a deductible farming expense, or was paid or incurred during the taxable year 2011.' D stated that since P's 'use the cash method for farming activity, prepaid expenses that were paid in 2010 are deductible in 2010, and are not added to basis.' D assessed an accuracy-related penalty under section 6662(a) of $15,864, on the grounds of a substantial understatement of income tax, a valuation misstatement, or negligence or disregard of rules or regulations. P appealed. D's primary contention is that allowing Steve to deduct farm input expenses on his 2010 return while allowing P to deduct expenses for the same farm inputs on her 2011 return, would amount to a double deduction and thereby contravene axiomatic principles of tax law.