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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 52,851
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Last modified: May 25, 2011