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OPINION
Petitioners’ 1988 return reflected a $36,000 profit from the
sale of one of the buildings owned by the Schara-Hagman
partnership. At trial, petitioners argued that they had
estimated the amount of profit from the sale when they filed
their 1988 return and that ultimately no profit was ever realized
from the sale of the building. In addition, petitioners claim
that they made approximately $25,000 in capital improvements to
the building at issue, which were never taken into account in
calculating the amount of gain on their 1988 return. Petitioners
claim that they made the capital improvements by paying workers
in cash. Respondent contends that petitioners have failed to
demonstrate how their 1988 return overstated their capital gain.
We agree with respondent.
Petitioners have not provided sufficient information to
support a change to the $36,000 capital gain reported for 1988.
Petitioners have not provided calculations showing that these
alleged capital improvements were not already taken into account.
In fact, there was no showing as to how petitioners computed
their 1988 capital gains. Petitioners have not shown the
adjusted basis of the building or the proceeds received from the
sale. We also question why petitioners found it necessary to
estimate the amount of profit from the sale of the building when
they did not file their 1988 return until February 3, 1993.
Petitioners have failed to establish that their 1988 return was
inaccurate with respect to their capital gains. See Rule 142(a).
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