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Bankruptcies
Gleave and Kenmore filed petitions for chapter 11
reorganization in the United States Bankruptcy Court for the
Western District of New York on August 2 and 3, 1982,
respectively.9
In their respective bankruptcy petitions, Gleave reported
that he owned Eggertsville Inn, the stock of which had a “Market
value” of $20,000, and Kenmore reported that it did not own stock
of any corporation. Gleave reported that he received “Annual
Income” of $16,872 from mortgages on two Tonawanda, New York,
properties in each of the 2 years immediately before he filed his
bankruptcy petition; Kenmore’s bankruptcy petition shows it as
the holder of the mortgages on these two properties. One of
8(...continued)
sales tax in accordance with the appropriate sales tax table.
Petitioners have not contended that Gleave is entitled to deduct
any greater amount, e.g., on account of the 1981 Zahno boat
purchase.
As a result of the foregoing (including supra note 4),
Gleave’s itemized deductions exceed the zero bracket amount (sec.
1(d)) for each of the years in issue.
9 The parties stipulated that Kenmore filed its ch. 11
petition on Aug. 2, 1982. Our finding is in accord (1) with the
stipulated copy of the ch. 11 petition, which shows on its face
the Bankruptcy Court’s stamp that the ch. 11 petition was filed
on Aug. 3, 1982, and (2) with Knoll’s testimony that the ch. 11
petitions were filed with the Bankruptcy Court on consecutive
days.
Gleave was discharged from bankruptcy on Sept. 22, 1986, and
Kenmore was relieved of the automatic stay provisions of 11
U.S.C. sec. 362 (1994) on or about May 16, 1989, for the purpose
of filing a petition and proceeding in the Tax court.
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