Astrida Terauds - Page 7

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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                   
               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           

               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                 

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Last modified: May 25, 2011