- 5 -
recognition of gain or loss on the sale or exchange of property.
The amount of gain recognized is the excess of the amount realized
over the property's adjusted basis. Sec. 1001(a). Due to
petitioner's failure to present any evidence, we are unable to
determine her basis in the 196th Pl. property. Petitioner must
bear the consequences flowing from her decision not to properly
prosecute her case. Accordingly, the amount of gain recognized
from the sale of the 196th Pl. property is the entire amount
realized; that is, the $76,750 sale proceeds. (While we recognize
that Washington is a community property State, the record does not
reflect whether the 196th Pl. property is petitioner's separate
property or community property or whether the $76,750 is
petitioner's share of community property or the entire amount of
the sale proceeds.)
We hold that petitioner received taxable wages, dividends, and
gains derived from dealings in property in 1990 as determined by
respondent. Accordingly, we sustain respondent's deficiency
determination.
Issue 2. Section 6651(a) Addition to Tax
Respondent determined an addition to tax pursuant to section
6651(a) for petitioner's 1990 taxable year. Petitioner can avoid
this addition to tax by proving that her failure to file was: (1)
Due to reasonable cause, and (2) not due to willful neglect. Sec.
6651(a); Rule 142(a); United States v. Boyle, 469 U.S. 241, 245-246
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011