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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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