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entitled to basis in the debenture. Accordingly, on the basis of
the information contained in Mr. Comey’s return, Mr. Comey’s
admission, and Mr. Comey’s failure to contest (or to introduce
evidence relating to) these issues, we find that Mr. Comey
received the interest, dividends, and proceeds described on his
return and in the notice for 1992. We also find that
respondent’s determination of basis was correct and that a $5,070
capital gain was realized on the sale of the debenture in 1992.
Once again, Mr. Comey’s only argument is that these amounts
are not his income, because he received them as Landtrak’s
nominee.
Dividends Received by Landtrak in 1992
As explained in more detail below, Mr. Comey claims that in
1978 he relinquished ownership of the securities giving rise to
the income items in issue. Nevertheless, Mr. Comey admitted at
trial (and we find) that until mid-1992, the stock with respect
to which the dividends were paid (and sales proceeds received)
was registered in Mr. Comey’s name, with no legend or other
indication on the certificates that the shares were held by Mr.
Comey as nominee.
In mid-1992, Mr. Comey tendered the stock certificates to
their issuers (or to the relevant transfer agents) and instructed
them to reissue the certificates registered in Landtrak’s name.
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