- 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