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adjudication of the action at bar”. In light of this posture, we
also sustain petitioner’s evidentiary objections to certain of
the stipulated facts and exhibits. The contested evidence
addresses only the reinvestment of the condemnation proceeds, and
while such information would have been relevant to applicability
of sections 1033 and 1034, it has no bearing upon our analysis of
the Relocation Act.
I. Internal Revenue Code
As a general rule, the Internal Revenue Code imposes a
Federal tax on the taxable income of every individual. See sec.
1. Section 61(a) defines gross income for purposes of
calculating such taxable income as “all income from whatever
source derived” and further specifies that gains from dealings in
property are included within this broad definition. See sec.
61(a)(3). Section 1001(a) then explains that “gain from the sale
or other disposition of property shall be the excess of the
amount realized therefrom over the adjusted basis”. The basic
principles of tax law would thus require petitioner to recognize
as income the amount, $40,000, by which the $65,000 she received
from the condemnation of her residence exceeded her $25,000
basis.
II. Uniform Relocation Assistance Act
The Relocation Act, however, provides contrasting treatment
for certain payments received in conjunction with Government
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