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capital gain of $17,458 from the sales of these stocks. After
allowing the 60-percent capital gain deduction under section
1202, petitioner's net long-term capital gain was determined to
be $6,983, which is the amount set forth in the notice of
deficiency.
At trial, petitioner acknowledged sales or exchanges
involving the stocks listed above. However, petitioner presented
conflicting positions as to why the $17,458 gain determined by
respondent was not correct. One of her positions is that, while
the transactions for all the stocks listed above totaled $82,529,
she did not receive cash for that amount, and that a portion of
the consideration received was stock she received in connection
with a corporate merger. With respect to the stock she received,
petitioner contends that no gain or loss was realized; therefore,
the exchange of such stock was not a taxable event and should not
be considered as part of the $82,529 determined by respondent to
have been the amount realized from sales of stock.6 Petitioner
presented no documentation to establish that there was a merger,
that the amounts reported by payers to the Internal Revenue
Service represented stock that was issued to petitioner in
exchange for other stock as the result of a merger, or that there
6
If this contention is correct, petitioner's basis for such
stock should also be deducted from the $65,071 basis determined
by respondent. This was not addressed by petitioner in her
testimony.
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