- 23 -
On Schedule L of Eureka Field Nursery’s 1985 Form 1120S, the
company reported “Buildings and other depreciable assets” of
$508,207.32 at the end of the tax year. On Schedule L of Eureka
Field Nursery’s 1986 Form 1120S, the company reported “Buildings
and other depreciable assets” of $61,597.13 before depreciation
of $42,592.07 at the end of the tax year.
A judgment of foreclosure was ordered on December 2, 1991,
with respect to the Miami property. Resolution Trust Corporation
(RTC) was the plaintiff. The Circuit Court for Dade County,
Florida, determined that RTC was due $206,044.77 in principal
under the note and mortgage sued upon, interest on the date of
judgment of $47,944.02, and unpaid real estate taxes from the
years 1989, 1990, and 1991 of $14,386.85, plus other costs of the
suit.
B. Discussion
Petitioner did not report any capital gains or losses on his
1991 Federal income tax return. Respondent argues that
petitioner had unreported capital gains of $57,531.25 in 1991.
This figure results from respondent’s netting long-term capital
gains of $90,534.25 with short-term capital losses of $33,003.
We address the long-term gains and short-term losses in turn.
1. Long-Term Capital Gains
Respondent computed long-term capital gains of $90,534.25 by
netting a long-term capital gain of $90,720.25 with a long-term
Page: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 NextLast modified: May 25, 2011