Estate of David J. Dickerson, Deceased, Dorothy Dickerson, Executor and Dorothy Dickerson, et al. - Page 8

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          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.                          

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