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ex-husband and the cost of improvements are not in dispute, and
it is clear that after the divorce petitioner had acquired all
the cost basis in the property.
The total cost basis, which was reported on petitioner's
1991 income tax return, is the correct amount to be used to
compute petitioner's gain. See Godlewski v. Commissioner, 90
T.C. 200 (1988).
To properly account for the concessions, a recomputation of
petitioner's tax deficiencies will be necessary, and
Decision will be entered
under Rule 155.
3(...continued)
shall be the adjusted basis of the transferor.
(c) Incident to Divorce.--For purposes of subsection
(a)(2), a transfer of property is incident to the divorce if
such transfer--
(1) occurs within 1 year after the date on which
the marriage ceases, or
(2) is related to the cessation of the marriage.
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Last modified: May 25, 2011