- 31 -
petitioner realized upon the disposition of the Miami property in
foreclosure includes the accrued interest of $47,944.02 and real
estate taxes of $14,386.85.31
We hold that petitioner realized $268,375.6432 upon
foreclosure of the Miami property, and as stated above, the
amount realized is to be apportioned 59 percent business and 41
percent personal. Thus, petitioner’s capital gain on the
foreclosure of the Miami property in 1991 is $90,720.66.33
b. Long-Term Capital Loss
Respondent determined that petitioner incurred a long-term
capital loss of $186 on his Eureka Field Nursery stock when the
31The notice of deficiency stated that if these costs were
claimed as a deduction, then the amount realized would be
increased by the same amount. Petitioner argues that he is
entitled to an itemized deduction for the past due real estate
taxes and mortgage interest. Respondent concedes petitioner’s
entitlement to these deductions but apportions the expenses as 59
percent business and 41 percent personal. Consistent with our
earlier finding regarding apportioning business versus personal
use of the structure, we find that petitioner is entitled to the
deductions but on a prorated basis as determined by respondent.
32The $206,044.77 of principal, $47,944.02 of accrued
interest to the date of judgment, and $14,386.85 of real estate
taxes for a total of $268,375.64 ($206,044.77 + $47,944.02 +
$14,386.85 = $268,375.64).
33Amount realized (see supra note 32) $268,375.64
Business use of property x .59%
158,341.62
Less adjusted basis (see supra note 30) 67,620.96
Net gain 90,720.66
We note that a 41-cent difference exists between our
calculation and respondent’s ($90,720.66 - $90,720.25 = $0.41).
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