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sale of the marital home. Only $14,551.91 remained to be divided
between the spouses on a 75/25 basis.
The owner of property or income is responsible for tax with
respect thereto. As indicated above, since the divorce court did
not change the result of the operation of Michigan law,
petitioner owned a one-half interest in the house and is thus
responsible for half the tax.
Petitioner also contends that since his ex-wife received 75
percent of the net proceeds and was responsible for paying the
tax, she was the beneficial owner of the property. In support of
his argument, petitioner relies on Friscone v. Commissioner, T.C.
Memo. 1996-193. On brief the Government also relies upon
Friscone and has reduced its claim to tax to only 25 percent of
the gain. That 25-percent figure comes from the provision in the
divorce decree for distribution of the small amount remaining
after discharge of all the liabilities relating to the property
and the establishment of the $54,000 escrow for payment of tax on
the gain. Nowhere else is there any indication in the decree
that the property or its proceeds is being divided on a 75/25
basis between the spouses.
Both parties misconceive the holding in Friscone. There the
taxpayer-husband owned stock, the proceeds of which the divorce
court divided between the spouses, 45 percent to the husband and
55 percent to the wife, with tax liability divided in the same
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