Paul A. Rendina and Janet Mae Rendina - Page 2

                                        - 2 -                                         

          respectively.1  The deficiency arose from respondent’s                      
          determination that the distribution to petitioner2 of two                   
          condominium units by Wood Street Apartments, Inc. (WSAI) was a              
          dividend.                                                                   
               We hold that petitioner received the condominium units as a            
          distribution in de facto liquidation of his shares of WSAI,                 
          thereby reducing his realized gain by the amount of his basis in            
          the shares and by the amount of certain liabilities to third                
          parties that he assumed, resulting in a lesser deficiency than              
          respondent determined.  We also hold petitioner liable for the              
          additions to tax for negligence under section 6653 and                      
          substantial understatement under section 6661, computed on the              
          reduced deficiency.                                                         
                                  FINDINGS OF FACT                                    
               Some of the facts have been stipulated, and are so found.              
          The stipulation of facts and attached exhibits are incorporated             
          herein.                                                                     
               When petitioners filed their petition, they resided in                 
          Willoughby Hills, Ohio.                                                     


          1Unless otherwise identified, section references are to the                 
          Internal Revenue Code in effect for 1988, and all Rule references           
          are to the Tax Court Rules of Practice and Procedure.                       
          2Janet Mae Rendina has an interest in this case solely by                   
          virtue of having filed a joint 1988 Federal income tax return               
          with her husband.  Accordingly, all references to “petitioner”              
          in the singular are to Paul A. Rendina.                                     




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011