- 7 - interest which is deemed to have been sold to her. See id.; sec. 1012. Respondent, assuming the division of property upon divorce was an equal but taxable division, made the following determination of the amount of gain on the sale of the Compton residence: Selling price $119,000 Selling expenses (16,852) Adjusted basis (52,851) Gain on sale 49,297 Respondent’s computation of the adjusted basis can be summarized as follows. First, respondent computed Mr. Anthony’s share of the value of the home at the time of the divorce. Using the purchase price in 1973 of $29,900 and the appraised value in 1994 of $135,500, respondent computed yearly appreciation of $5,029 over the 21-year period. Respondent then computed the value at the time of the divorce in 1984 to be $85,219 (purchase price plus 11 years appreciation), and thus Mr. Anthony’s share to be $42,610. Second, respondent computed petitioner’s adjusted basis as follows: Petitioner’s share of purchase price (� of $29,900) $14,950 Mr. Anthony’s share of value at divorce 42,610 Depreciation allowed in 1994-1996 (4,709) Adjusted basis 52,851Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011