- 12 - Commissioner, supra at 507; Achiro v. Commissioner, 77 T.C. 881, 890-891 (1981). At trial, petitioners asserted that respondent's argument regarding prejudgment interest presented a new matter under Rule 142(a). Respondent's prejudgment interest argument did not require an increase in the deficiency arising from the condemnation proceeds, which were characterized as ordinary income in the notice. However, respondent's prejudgment interest argument did require the presentation of different evidence. Accordingly, at trial, we shifted the burden of proof to respondent on this issue. Rule 142(a); Wayne Bolt & Nut Co. v. Commissioner, supra at 507; Achiro v. Commissioner, supra at 890- 891. Respondent does not dispute this determination on brief. In regard to the remaining issues, however, petitioners bear the burden of proof. Rule 142(a); INDOPCO, Inc. v. Commissioner, supra at 84. Issue 1. Involuntary Conversion Respondent determined that the $62,937.35 paid by the State to petitioners in tax year 1989 should be included in their income. Respondent further asserted that a portion of this $62,937.35 should be characterized as interest. Petitioners concede that $1,333.35 of the $62,937.35 is taxable interest income, but no more. Furthermore, they argue that, under the authority of section 1033, the remaining amount ($61,604) should not be included in their income in tax year 1989.Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
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