- 8 -
v. Commissioner, 440 F.2d 688, 689-690 (9th Cir. 1971), affg. per
curiam T.C. Memo. 1969-159; Tokarski v. Commissioner, 87 T.C. 74,
77 (1986).
Gain From the Sale of Real Property
In May 1990, the Dickersons received $9,748 in proceeds from
the sale of property located at lot 58 of Lake Mont Pines (lot
58). The Dickersons had a zero basis in lot 58.3 Also in 1990,
the Dickersons sold lot 59 of Lake Mont Pines (lot 59) for
$89,000. The Dickersons' total basis in lot 59 was $32,061.47.
The parties have stipulated that the Dickersons had taxable gain
from the sale of the two lots in the amount of $57,855. The
Dickersons now argue that they should be entitled to increased
basis in the property due to litigation costs which were not
reimbursed. The evidence relating to these costs was solely in
the form of trial testimony. Petitioners presented no further
evidence of any litigation costs. Petitioners have failed to
prove that any litigation costs were incurred and, if they had
been incurred, why petitioners are entitled to an increase in
basis as a result. We sustain respondent on this issue.
Rental Income
Respondent argues that the Dickersons received unreported
rental income in 1990 in the amount of $3,550. The Dickersons
leased residential property (the Green Ridge residence) to Roger
and Linda Barrett (the Barretts) in 1990. The Dickersons
3 This was conceded by petitioners on brief.
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