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other documents pertaining to the returns. Petitioner testified
that Mr. Rowe assured her he had records for petitioners’ tax
returns. Petitioner claims that she was unaware of any gain from
the sale of real estate and that she believed that all income,
capital gains or otherwise, was included on petitioners’ tax
returns.15
Petitioner has admitted that she knew Lots 22 and 27 were
sold in 1987. However, respondent has not proven that petitioner
knew the amount of the gain on the sale, or even that any gain
was made on the sale. Therefore, respondent has failed to
establish that petitioner had actual knowledge of this item
giving rise to a deficiency. Accordingly, we hold that
petitioner is entitled to relief from joint liability under
section 6015(c) for the portion of this item allocable to Mr.
Rowe.
ii. Anorada Property
Petitioner maintains that she was unaware that the Anorada
property was sold in 1988. In connection with the sale of the
Anorada property, a settlement check dated September 30, 1988,
for $13,552.31 was written payable to “John Rowe and Donna Rowe”.
Petitioner claims that she did not endorse the settlement check
because the signature does not look like hers and because she
15We note that the first page of the 1987 return lists a
capital gain of $30,159, which is almost the same amount of gain
realized on the sale of Lots 22 and 27.
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