Robert J. and Anne L. Wilson - Page 12

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          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.                           

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