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The gain from the sale or other disposition of property is
the excess of the amount realized over the adjusted basis of the
property provided in section 1011 for determining gain, and the
loss is the excess of the adjusted basis provided in that section
for determining loss over the amount realized. Sec. 1001(a).
Petitioner must establish his adjusted basis in the Church Street
property for purposes of determining the gain or the loss that he
realized, and must recognize, on its sale. O’Neill v. Commis-
sioner, 271 F.2d 44, 50 (9th Cir. 1959), affg. T.C. Memo. 1957-
193; see Burnet v. Houston, 283 U.S. 223, 227-228 (1931). As
pertinent here, (1) petitioner’s adjusted basis in determining
the gain or the loss from the sale of the Church Street property
is his basis in that property determined under section 1012,
adjusted as provided in section 1016,88 see sec. 1011(a); and
87(...continued)
and Ms. Brodsky support that finding. Petitioner and Ms. Brodsky
included Schedule E in each of those returns. In each such
Schedule E, they reported the Church Street property as rental
property. In the 1991 Schedule E, they claimed rental expenses
with respect to that property, in the 1992 Schedule E, they
listed the Church Street property as a rental property, and in
the 1992 Schedule D they claimed a capital loss with respect to
that property. We find that the 1991 and 1992 returns contain
admissions by petitioner and Ms. Brodsky that one or both of them
had an ownership interest in the Church Street property at least
during part of 1991 and 1992 until the date of the sale of that
property. Those admissions may not be overcome without cogent
evidence that they are wrong. See FRE 801(d)(2); Waring v.
Commissioner, 412 F.2d 800, 801 (3d Cir. 1969), affg. per curiam
T.C. Memo. 1968-126; Estate of Hall v. Commissioner, 92 T.C. 312,
337-338 (1989).
88With respect to the adjustments to basis under sec. 1016
that are required by sec. 1011(a), petitioner testified at the
(continued...)
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