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income reported on his 1993 return. Petitioner made no entries
on Part III of the form (One-Time Exclusion of Gain for People
Age 55 or Older). Nor did he make any entries on Part IV of the
form (Adjusted Sales Price, Taxable Gain, and Adjusted Basis of
New Home) relevant to whether the gain from the sale of the
condominium must be deferred. In a Form 1040X, Amended U.S.
Individual Income Tax Return, received by respondent on April 15,
1997, petitioner reduced the adjusted gross income reported on
his 1993 return by $17,500.4 According to the explanation
contained in the amended return, the reduction results from
petitioner’s “option to change reporting capital gain on house”.
Petitioner also claimed what is described as a “carry
forward loss” credit of $138,555.16 on his 1993 return. The
details supporting the computation of this item are not included
on the return.
The notice of deficiency upon which this case is based
contains adjustments to petitioner’s income as reported on his
original return, although the notice addresses items reported on
4 Petitioner first filed a Form 1040X for 1993 on June 10,
1996. In that amended return he eliminated the $10,000 deduction
for the fine claimed on his original return. He again claimed
entitlement to the deduction in the amended return filed April
15, 1997. Apparently, neither amended return was processed by
respondent.
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