- 5 - petitioner's attorney acknowledged and agreed to Mr. Wells' "reservation of the right to contest the legal effect of the delivery and the overall consideration relating thereto." On Mr. Wells' 1989 Federal income tax return, he claimed the deduction for the home mortgage interest and the real property taxes on the Paddock Lane property. The proceeds from the sale of the Paddock Lane property were considered in the overall settlement or distribution of the marital estate on June 12, 1991. Petitioner reported in her 1989 Federal income tax return that she sold her home for $630,000. She further reported selling expenses of $58,933, which produced $571,067 as the amount realized on the sale. Petitioner then reported a long- term capital gain of $10,199 on the sale. Petitioner's basis in the Paddock Lane property was $229,868 at the time of the August 17, 1989 sale.2 Selling expenses of the Paddock Lane property were $50,884.3 2 Respondent apparently computed the deficiency without taking into account petitioner's basis in the property. We will give effect to the parties' stipulation as to the basis of the Paddock Lane property. 3 As noted above, petitioner reported $58,933 as expenses related to the sale of the Paddock Lane property. However, we will give effect to the parties' stipulation that the selling expenses were $50,884.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011