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correct amount of capital gain on the sale of Sipsey Harbor lots
and the sale of trucks.
Sipsey Harbor
Petitioner contends that he sold Sipsey Harbor in one
transaction, while respondent contends that the Sipsey Harbor
lots were disposed of in several transactions.
Sipsey Harbor consisted of 41 lots. In 1988, petitioner
issued an undated warranty deed for Sipsey Harbor to Ann Burdick
and Tarrie Hyche. Yet on his financial statements dated July 27,
1989 and July 31, 1989, petitioner represented himself as the
owner of 30 Sipsey Harbor lots worth $450,000. Thus, despite the
warranty deed issued by petitioner to Tarrie Hyche in 1988,
petitioner still considered himself the owner of 30 Sipsey Harbor
lots in July 1989.
In 1989, petitioner was the grantor on deeds to two Sipsey
Harbor lots, which were recorded in the Winston County property
records. In 1990, petitioner was the grantor on deeds to four
Sipsey Harbor lots, which were recorded in the Winston County
property records. Thus, rather than disposing of Sipsey Harbor
in one transaction, petitioner disposed of his interest in two
Sipsey Harbor lots in 1989 and four Sipsey Harbor lots in 1990.
No sales are reflected on petitioner’s 1989 or 1990 return, nor
is there any evidence to corroborate petitioner’s alleged
disposition of petitioner’s entire interest in Sipsey Harbor.
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