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another account maintained in Landtrak’s name with Swiss Bank
Corp. in Switzerland.
In the notice to Mrs. Comey, respondent determined that the
gain realized on the sale of the Capital Fund shares should be
included in Mrs. Comey’s income for 1991. Respondent further
determined that Mrs. Comey’s basis in the Capital Fund shares was
$19,628. Accordingly, respondent determined that Mrs. Comey
realized $90,788 in unreported capital gain for 1991 (i.e.,
$110,416 proceeds less $19,628 basis equals $90,788 gain) from
the sale of the Capital Fund shares.
During the conduct of the cases at hand, petitioners have
not contested that Mrs. Comey received $110,416 in net proceeds
from the sale of the Capital Fund shares in 1991. Although
petitioners contend that Mrs. Comey had transferred ownership of
the Capital Fund shares to Landtrak on January 1, 1987, they
nevertheless admitted at trial that the Capital Fund shares were
held in Mrs. Comey’s name when sold.
We find that Mrs. Comey received $110,416 in net proceeds
from the sale of the Capital Fund shares in 1991.
With respect to the basis in the Capital Fund shares, Mrs.
Comey’s petition did not assert that respondent’s determination
of basis was erroneous. At trial, however, petitioners offered a
document prepared by Mr. Comey, which purported to show that Mrs.
Comey’s basis in the Capital Fund shares was higher than that
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