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Wedtech, respectively). Respondent’s determination of a
deficiency for 1985 results from his adjustment increasing
petitioners’ gross income for 1985 by $107,000 on account of the
sale by petitioner of 25,000 of the Wedtech shares (the 25,000
shares).
At the commencement of the trial in this case, the parties
stipulated that petitioner Richard Biaggi, executor, representing
the Estate of Marie Biaggi, was relieved of all liability for tax
and additions to tax for 1983 and 1985 under section 6013(e) on
account of Marie Biaggi’s status as a so-called “innocent
spouse”. The Court accepted that stipulation, and we shall
reflect it in our decision.
At the conclusion of the trial in this case, petitioner
conceded that respondent was correct in adjusting petitioners’
gross income for 1983 to include the value of the Wedtech shares.
However, petitioner does not concede that, when received, the
value of the Wedtech shares was $1,260,000, and we must determine
that value. Petitioner also conceded that, in 1985, he realized
gain on the sale of the 25,000 shares, which, erroneously, he
failed to report. He agrees that (1) the amount he realized on
that sale was $387,111, and (2) his adjusted basis in the 25,000
shares is a proportionate amount of the value we determine for
the Wedtech shares.
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