- 6 - subtitle, the entire amount of the gain or loss * * * on the sale or exchange of property shall be recognized." Petitioners' brief does not dispute the Commissioner's determination that the $23,000 cash and the discharge of Eugene's $31,200 indebtedness to MUI were includable in the computation of petitioners' capital gain for 1990. Nor is there any controversy over petitioners' right to use the installment method. However, petitioners do challenge the Commissioner's determination that the entire amount of the redetermined sales proceeds was reportable on their 1990 return. They contend that they are liable for the taxes on only 45 percent of the proceeds of the sale. They also object to being charged with the entire amount of the interest received in 1990 on the long-term note, and contend that they are accountable for only 45 percent of that amount. They take like positions with respect to 1991 to the extent that capital gain from the sale of MUI stock and interest on the long-term note are involved. The Government argues that petitioner was the owner of the entire 150 shares of MUI and is chargeable with all the gain realized. The difficulty with the Government's position is that it fails to recognize just what the decree of the divorce court covered. The court found that "the principal remaining assets of the marriage consist of Plaintiff's [Eugene] business interests in Defendant Maintenance Unlimited, Inc., of which Plaintiff [Eugene] owns fifty percent (50%) of the issued and outstandingPage: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011