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Gain on the Sale of the Burlington Property
The gain from the sale of property shall be the excess of
the amount realized over the adjusted basis. Sec. 1001(a). The
adjusted basis for determining gain or loss from the sale of
property is the basis (cost) of such property, adjusted as
provided in section 1016. Secs. 1011, 1012. Section 1016
adjustments to basis pertinent to the basis of a personal
residence include increases due to capital expenditures, and
reductions due to nonrecognition of gain on a previous residence
under section 1034(e). Sec. 1016(a).
Petitioners (or the Trust) sold the Burlington property to
the Janases for $320,000. Out of that amount, petitioners paid
$2,037 in closing costs. Although petitioners placed at least
one advertisement in the Hartford Courant in connection with the
sale, the record does not establish the cost petitioners
incurred, and we decline to speculate. Petitioners have alleged
they spent a total of $24,443 for repairs performed and carpeting
installed while the Trust held the Burlington property. Most of
those claimed expenditures were wholly unsubstantiated.
Respondent allowed $4,650 for repairs in recalculating
petitioners' increased deficiency. We have no evidence to
establish any greater amount for repairs or other selling
expenses in connection with the sale of the Burlington house.
Petitioners paid Mr. Carey a total of $5,123.11 for his
legal services related to acquisition of the Burlington property.
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