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other 14 condominium units was $66,915.14 Four months after the
distribution, petitioner sold one of his condominium units for
$67,900.
Petitioner has not convinced us that the fair market value
of his condominium units should be less than the average selling
price of the other units sold, or $66,915. Thus, we find the
fair market value of the condominiums transferred to petitioner
to be $133,830.
B. Basis of WSAI Shares: Debt v. Equity
Respondent maintains that no loan or other value was given
by petitioner to WSAI. However, the deposit records of National
City Bank, where WSAI maintained a checking account, indicate
that petitioner deposited $41,200 into WSAI’s account. Because
the books and records of WSAI were not made available, we must
look to such documentary evidence as bank statements, as well as
the testimony of witnesses, in considering whether petitioner
gave value to WSAI. Hagaman v. Commissioner, T.C. Memo. 1987-
549. We are satisfied that petitioner’s deposits into the WSAI
account constitute value that resulted in cost to be taken into
account in determining petitioner’s gain on the receipt of the
condominium units.
14We exclude from this calculation the purchase price of
Ackerman’s condominium units. See supra note 7.
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