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proceeds was $32,567.38. Petitioners claimed a cost basis in the
property in the amount of $16,414.42 and reported a net capital
gain with respect to the sale in the amount of $16,152.96.
Petitioners indicated on the return that petitioner had acquired
his interest in the property on October 15, 1991.
Upon examination, respondent determined additional capital
gain in the amount of $16,414.42. Respondent asserted that
because petitioner offered no proof of his cost basis in the
property, the entire amount of the sale proceeds constituted
taxable gain.
The parties agree that the amount realized from the sale of
the Simsbury property was $32,567.38. The record does not
contain any purchase and sale agreement pertaining to
petitioner's purchase of the property and does not contain the
trust instrument which appointed Mr. Kostochko as trustee.
Petitioners, however, offered into evidence an undated settlement
statement pertaining to the sale of the property in 1993.
Respondent objected to the settlement statement as inadmissible
hearsay. Even if the Court were to consider this document, it
would not support petitioners' position because it provides no
information regarding petitioner's basis in the property.
Petitioners have not presented any other evidence to establish
petitioner's basis in the property. Petitioners have failed to
meet their burden on this issue. Rule 142(a). We, therefore,
sustain respondent's determination.
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