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determined. We uphold respondent’s determination that the
transactions resulted in a sale of the McDonald Street property,
but we hold for petitioners on the penalty issue.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
The stipulations of fact and the accompanying exhibits are
incorporated herein by this reference. Petitioners are husband
and wife who resided in Green Bay, Wisconsin, at the time they
filed their petition.
Since 1969, petitioner Donald DeCleene (petitioner) has
owned and operated a trucking/truck repair business. In 1976 and
1977, petitioner purchased improved real property located on
McDonald Street, Green Bay (the McDonald Street property). He
used the McDonald Street property for his business operations.
In 1993, petitioners owned and worked as employees of
DeCleene Truck Repair and Refrigeration, Inc. (Refrigeration).
Petitioner served as president. Refrigeration installs and
repairs truck refrigeration units and performs general truck
repairs. Through December 29, 1993, Refrigeration rented the
McDonald Street property from petitioner as its business
premises. Petitioner computed his adjusted basis for the
McDonald Street property, including the depreciated cost of
improvements, as being $59,831 at the time he disposed of that
property on December 29, 1993.
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