- 37 - Respondent was unable to locate any record showing that an estate tax return had been filed on behalf of Frank or Katherine. G. Capital Gain for 1989 Frank and Katherine reported a long-term capital gain on their joint Federal income tax return for 1989 from the sale of a lot (lot). They calculated that gain as follows: Sales price $40,000 Basis 36,579 Gain from sale 3,421 Frank conveyed the lot to Russell A. Sachs (Sachs) by warranty deed dated March 20, 1989. The settlement statement relating to the sale of the lot to Sachs shows that $11,033 of the $40,000 sales price was used to pay off a mortgage loan. The settlement statement also shows expenses of the sale of $4,990. Frank had acquired his interest in the lot from a Patricia A. Johnson (Patricia)18 on March 18, 1989, by means of a quitclaim deed. The quitclaim deed stated that the transfer was for no consideration. Patricia had acquired her interest in the lot with John M. Johnson (John) for $25,000 on April 6, 1979, from Charles and Annie Mobley (Mobleys) pursuant to an Articles of Agreement which specified that title would not be conveyed until after payment of the $25,000 purchase price. By quitclaim deed John transferred 18 The record does not reveal whether Patricia A. Johnson was Frank and Katherine’s daughter Patricia or an unrelated party with the same name.Page: Previous 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Next
Last modified: May 25, 2011