15
Cost 116,096
Less depreciation 36,536
Adjusted basis 79,560
Gain on sale 20,926
Capital loss carryover (from 1987) 3,100
Taxable gain 17,826
After the notice of deficiency was issued, petitioners filed
an amended return for 1989 with an amended Form 2119, wherein
they recomputed their gain on the sale of the California property
as follows:
Selling price of home $110,000
Expense of sale 9,514
Amount realized 100,486
Basis of home sold 84,341
Gain on sale 16,145
Petitioners also reported that they had not replaced their home
and did not plan to do so within the replacement period.
At trial, petitioner presented a more detailed calculation
of the gain realized, indicating that the difference between the
gain determined by respondent and that calculated by petitioners
results from (1) a difference of $549.09 in the original cost of
the property, (2) a difference of $1,212.75 in the depreciation
of the property, and (3) an alleged loan of $4,700 that
petitioner subtracted from the selling price to arrive at the
amount realized.
Petitioner provided no evidence to explain the discrepancies
in cost or depreciation, other than his own testimony that he
claimed excess depreciation intentionally. With respect to the
"loan" of $4,700, petitioner testified that he borrowed the money
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