- 3 - Petitioner testified that he sold unimproved land which he had inherited from his grandmother. Petitioner failed to produce any evidence of a basis3 in the inherited property. However, the Information Report reflected that the seller of the property was petitioner and "Lola Cowan".4 In addition, the Information Report reflected that the sellers' net proceeds were $9,007.08. In his petition and at trial, petitioner raised traditional "tax protester" type arguments alleging that respondent is barred from making an assessment after 3 years. Respondent's determinations as to petitioner's tax liability are presumed correct, and petitioner bears the burden of proving otherwise. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Section 61 defines gross income as all income from whatever source derived. Included within the definition of gross income is "Gains derived from dealings in property". Sec. 61(a)(3). However, expenses paid in connection with the disposition of real property ordinarily are capital expenditures which must be offset against the selling price in determining the gain or loss. Gunn v. Commissioner, 49 T.C. 38, 52 (1967). The Information Report reflected that petitioner and Lola Cowan were the sellers of the unimproved land. Petitioner 3 Sec. 1014(a)(1) provides that the basis of property acquired from a decedent is generally the fair market value of the property at the date of the decedent's death. 4 Lola Cowan is believed to be petitioner's wife.Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011