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amount of $2,885 with respect to petitioners' 1989 tax year.
Petitioners conceded all the adjustments in the notice of
deficiency.2 The issues for decision are: (1) Whether
petitioners, during 1989, realized a gain or loss under section
1001(a) on the foreclosure sale of real estate; (2) if
petitioners realized a loss, whether petitioners are entitled to
a credit or refund for overpayment of their 1989 income tax under
section 6512; and (3) whether petitioners are liable for the
addition to tax under section 6651(a)(1).
At trial, the parties submitted this case fully stipulated.
All of the stipulated facts are so found, and those facts, with
the annexed exhibits, are incorporated herein by reference. At
the time the petition was filed, petitioners' legal residence was
Alpine, Utah.
Petitioners filed their 1989 Federal income tax return on
October 30, 1990. On April 12, 1991, petitioners filed an
amended return for 1989, claiming an ordinary loss of $75,379
resulting from the foreclosure sale of real estate, consisting of
a lot and improvements, owned by Mark R. Webb (petitioner). On
2
These adjustments consist of the following: (1) A reduction
in depreciation of $762; (2) a reduction in car and truck
expenses of $319; (3) a reduction of Schedule C interest expense
of $3,699; (4) a reduction of telephone expenses of $513; and
(5) a reduction in Schedule A interest of $41. Petitioners also
conceded that they were not entitled to a personal exemption
deduction for petitioners' son, Gregg. There is a dispute as to
whether petitioners conceded the addition to tax under sec.
6651(a)(1). That issue is dealt with in the body of the opinion.
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