Maurice E. Hodgkins and Barbara J. Hodgkins - Page 13

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               Petitioners have failed to prove that their gain on Sawgrass           
          was less than respondent determined.  They offered as evidence a            
          document entitled "Sellers Instructions", marked "Estimated".               
          They also submitted a handwritten itemized summary of their                 
          calculation of gain, but did not substantiate most of the items             
          listed.  The items that they did substantiate--a $6,663 payment             
          to make the mortgage current, $93,948 to repay the mortgage, and            
          $7,957 to pay the cost of selling--do not exceed respondent's               
          calculation.  As for the expenses previously deducted as a rental           
          loss, nothing in evidence substantiates them.  Petitioners have             
          the burden of proof, Rule 142(a), and they have failed to carry             
          it.                                                                         
          3.  Madison Avenue                                                          
                                  FINDINGS OF FACT                                    
               In 1987 petitioners purchased property located at 9266                 
          Madison Avenue, Orangevale, California (Madison Avenue).  John              
          maintained an office there.  During 1988, petitioners incurred a            
          rental loss on the property and sold it in June of that year.               
          Respondent's Notice of Deficiency disagreed with both the claimed           
          rental loss and the amount of gain shown on petitioners' return.            
          After concessions, the only disputed issue is a $819 depreciation           
          deduction.                                                                  








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