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In the notice of deficiency, respondent determined that one-
half of the gain realized from the sale of the townhouse is
includable as long-term capital gain in petitioner’s 1994 income
and adjusted her income for that year accordingly. Respondent
also determined that petitioner is liable for the late filing
addition to tax under section 6651(a)(1) because her 1994 return,
due to be filed on or before August 15, 1995, was not filed until
November 19, 1996.
Discussion
There is no dispute between the parties as to the amount of
gain realized upon the sale of the townhouse. Furthermore,
consistent with Florida law and as reflected in the divorce
decree, the parties agree that petitioner was entitled to receive
one-half of the gain, or at least one-half of the net proceeds,
from the sale of the townhouse. See Ball v. Ball, 335 So. 2d 5,
7 (Fla. 1976), superseded by statute on other grounds as stated
in Robertson v. Robertson, 593 So. 2d 491 (Fla. 1991); see also
Landay v. Landay, 429 So. 2d 1197 (Fla. 1983). Petitioner does
not appear to dispute, as a general proposition, that gains
derived from dealings in property are included within the
definition of gross income. See sec. 61(a)(3).
Nevertheless, petitioner argues that she need not include
any of the gain from the sale of the townhouse in her 1994 income
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