- 50 -
Brodsky reported in their 1992 joint return with respect to the
sale of the Church Street property, they have a gain of $23,000
from that sale, all of which must be recognized for 1992.
Respondent made that determination with respect to the sale of
the Church Street property because respondent determined that
petitioner and Ms. Brodsky had not established their basis in
that property when it was sold.12
In the notice for 1993, respondent determined that, instead
of the $11,315 gain which petitioner and Ms. Brodsky reported in
their 1993 joint return with respect to the sale of the Sanchez
Street property, they have a gain from that sale of $48,000.
Respondent made that determination because petitioner and Ms.
Brodsky had not established their basis in that property when it
was sold.13
In the notices, respondent further determined that peti-
tioner and Ms. Brodsky are liable for each of the years at issue
for the fraud penalty under section 6663(a) on the entire amount
of the underpayment for each such year of the tax that was
required to be shown in the return for each such year. In the
alternative, respondent determined in the notices that petitioner
12Respondent also disallowed in the notice for 1991 and 1992
a claimed capital loss carryover to 1993.
13Respondent also determined in the 1993 notice that peti-
tioner and Ms. Brodsky are not entitled to the $27,000 capital
loss carryover from 1992 that they claimed in their 1993 joint
return.
Page: Previous 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 NextLast modified: May 25, 2011