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1989
# of Date Date Sales Cost or
shares acquired sold price basis
20,000 1/30/87 3/13/89 $240,000 $74,000
20,000 1/30/87 5/26/89 322,500 74,000
Petitioner correctly listed the number of shares sold, the
date on which they were sold, and the sales price on the 1988
organizer. However, he incorrectly listed acquisition dates. He
also incorrectly listed the basis of the stock he sold in 1988
and 1989.
Petitioner did not give Delk documents to support the
information he listed on the tax organizers. Delk used the
information from petitioner’s tax organizers to prepare
petitioners' 1988 and 1989 tax returns.
D. Petitioners’ Tax Returns for 1988 and 1989
Petitioners reported on their 1988 and 1989 returns that
they sold OPCS stock as follows:
1988
# of shares Reported Sale Gain Actual
sold Basis price reported basis1
35,280 $158,760 $467,500 $308,740 $235
3,000 13,000 52,500 39,500 20
2,000 9,000 26,500 17,500 13
1989
# of shares Reported Sale Gain Actual
sold Basis price reported basis1
20,000 $74,000 $240,000 $166,000 $133
20,000 74,000 322,500 248,500 51,800
1 This column was not on petitioners’ 1988 return.
Petitioner received the 1988 return from Delk on April 14,
1989, and signed it without reviewing it in detail.
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