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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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Last modified: May 25, 2011