- 7 - La-Z-Boy Stock Petitioners and their son, Timothy Fritz, sold 5,406 shares of La-Z-Boy stock from their A.G. Edwards account in 1985. Respondent determined that the shares sold had been inherited by Mr. Fritz from his mother, Selma Fritz, upon her death.3 Respondent also determined that the basis of the stock sold was its date of death value of $10.125 per share. Section 1014 generally provides that the basis of property acquired from a decedent is the fair market value of the property at the date of the decedent's death or on the alternate valuation date. Sec. 1014(a). Respondent's determination is presumed correct, and the burden of proof rests with petitioners to show the correct basis in their La-Z-Boy stock. Rule 142(a); Burnet v. Houston, 283 U.S 223, 228 (1931). Petitioners essentially argue that the basis of the stock sold is not $10.125 per share, because the stock sold is not the same stock that was inherited by Mr. Fritz. However, they have failed to present any credible evidence to convince us that respondent's determination is erroneous. Moreover, we conclude that respondent has correctly determined that the shares sold were those inherited by Mr. Fritz under the terms of his mother's 3Respondent allocated the gain from the sale of the La-Z-Boy stock one-third each to Robert, Jennifer, and Timothy Fritz.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011