David Dobrich and Naomi Dobrich - Page 2
Legal Research Home >
US Tax Court > 1997 > David Dobrich and Naomi Dobrich - Page 2
- 2 -
civil fraud penalties for 1989 and 1990 of $833,469 and $833,490,
respectively. Respondent determined the income tax deficiency
and penalty in the alternative for 1989 or 1990.
The issues for our consideration are: (1) Whether
petitioners may defer recognition of gain from the disposition of
certain real property under section 1031, (2) if the transaction
does not qualify for section 1031 exchange, whether petitioners
are entitled to report the gain in 1990 under the installment
sale method, and (3) whether petitioners are liable for a fraud
penalty under section 6663.
FINDINGS OF FACT2
At the time the petitions in this case were filed,
petitioners resided in Danville, California. Petitioners are
married and filed joint Federal income tax returns for each of
the years in issue.
During the years in issue, petitioners engaged in real
estate investment and received rental income from commercial and
residential real estate. In 1977, petitioners purchased 137
acres of unimproved real property located in Antioch, California
(Antioch property), for $300,000 and thereafter spent $30,000 in
engineering and consulting fees to improve the property. In
1988, petitioners decided to sell a portion of the Antioch
2 The stipulation of facts and the attached exhibits are
incorporated herein by this reference.
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