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notices of deficiency, petitioner did not realize capital gains
during the taxable years 1989, 1990, 1992, and 1993. Respondent
conceded that petitioner either incurred capital losses or had no
capital gains during those years.
Petitioner failed to file a response to respondent's Second
Request for Admissions. As a consequence, the matters quoted
above were deemed admitted pursuant to Rule 90(c). See
Marshall v. Commissioner, 85 T.C. 267, 272 (1985); Freedson v.
Commissioner, 65 T.C. 333 (1975), affd. 565 F.2d 954 (5th Cir.
1978).
On August 31, 1999, respondent filed a Motion for Leave to
File an Amendment to Answer and lodged an Amendment to Answer
with the Court. On October 1, 1999, the Court granted
respondent's Motion for Leave and filed respondent's Amendment to
Answer. The Amendment to Answer included affirmative allegations
that petitioner had received income in the form of ground rents
during the years in issue as follows:
a. During each of the years 1989 through 1993,
petitioner owned an interest in certain real estate
that was managed in her behalf by Charles Dunn Company.
b. Petitioner was entitled to receive ground
rents from tenants leasing the real estate during each
of the years 1989 through 1993.
c. Charles Dunn Company collected the ground
rents from the tenants. After subtracting amounts paid
for the maintenance of the property and its management
fee, Charles Dunn Company paid net amounts to
petitioner in each of the years 1989 through 1993.
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