Robert W. and Jennifer J. Fritz - Page 7

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          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.                

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