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petitioner's gain should take into account the legal expenses of
$1,349, and that petitioner's gain is $92,388.
Discussion
Petitioner argues that she had a gain of $29,402 on the
sale. Petitioner cites no case law to support her argument, but
relies mainly on her interpretation of selected provisions of the
Internal Revenue and Bankruptcy Codes. The gist of petitioner's
argument is that the amount of the Note is not included in the
amount realized on the sale because she was discharged from
liability on it. Petitioner does not explain the computation of
her proffered $29,402 gain, but we surmise it represents the sum
of the following items: (1) Legal fees of $1,349, (2) settlement
proceeds of $18,651 received by petitioner at settlement, and
(3) $9,402 that was paid at settlement to discharge a Federal tax
lien on the residence. Petitioner does not explain the $16,035
difference between the $131,737 selling price and the $115,702
amount that we derive from adding petitioner's proffered gain of
$29,402 to the $86,300 that was paid at settlement in order to
satisfy the Note.
We reject petitioner's argument. Petitioner does not
dispute the fact that her gross income for 1991 includes her gain
on the sale, see sec. 61(a)(3), or that her gain must be
recognized in 1991, see sec. 1001(c). Nor does she dispute the
fact that her gain is computed by subtracting her adjusted basis
in the residence from the amount realized on its sale. See sec.
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