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Respondent determined a deficiency of $28,125 in
petitioner’s 1997 Federal income tax and additions to tax under
sections 6651(a)(1), (a)(2), and 6654(a) in the respective
amounts of $6,328.12, $4,500, and $1,515.18. After concessions,2
discussed infra, the issues are petitioner’s basis in 600 shares
of IBM stock sold by petitioner on September 19, 1997, and
petitioner’s entitlement to a dependency exemption deduction and
head of household filing status. Petitioner resided in New York,
New York, at the time the petition was filed.
The facts may be summarized as follows. Petitioner did not
file a Federal income tax return for the 1997 taxable year. In
paragraphs 9 and 10 of the Stipulation of Facts, the parties
stipulated that the amount realized by petitioner from the sale
of securities was $112,340 and that of this amount “Stock in the
amount of $52,419.00 had a cost basis of $39,411.00 resulting in
a $13,008.00 gain of which $1,701.00 is long term gain,
$12,286.00 is a short term gain and $979.00 is short term loss.”
The parties also agree that the difference between the gross
sales ($112,340) and the $52,419 referred to above is $59,9213
2 It is stipulated that during 1997 petitioner received (1)
Social Security benefits of $11,397, interest income of $39,
dividend income of $1,269, and royalty payments of $1,000. Also,
petitioner has never disputed that he is liable for the failure
to file and failure to pay additions to tax under secs.
6651(a)(1), (a)(2), and 6654(a).
3 The brokerage statement shows that the amount received was
(continued...)
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