- 4 - conceded that petitioners had a $29,214 basis in the stock and therefore are entitled to a $2,0092 loss in 1989 on the sale of the stock fund. OPINION I. Allocation of Condemnation Award Between Gain From the Sale of Property and Interest Income In their Rule 155 computations for 1989, neither respondent nor petitioner made a correct allocation of the condemnation award between gain from the sale of property and ordinary interest income. To comply with our holding in Wilson I, for 1989 petitioners' $62,937 condemnation award must be decreased, not only by the $1,333 attributable to postjudgment interest, but also by the $34,618, representing prejudgment interest. Simultaneously, petitioners' interest income must be increased by that amount. Accordingly, we find that in 1989, petitioners received a condemnation award of $26,986, which is characterized as capital gain, and interest income of $35,951, representing $34,618 in prejudgment interest and $1,333 in postjudgment interest, which is characterized as ordinary income. II. Itemized Deduction for Attorney Fees Respondent's Rule 155 computation fails to take into account the fact that petitioners incurred $26,341 in attorney's fees for 1989 in connection with the condemnation proceedings on their 2 On brief, respondent concedes a $2,008.81 actual loss on the sale of the stock, which we rounded up to $2,009.Page: Previous 1 2 3 4 5 6 7 8 Next
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