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as petitioners reported on their 1992 Federal income tax return,
or $166,831, as respondent determined in the notice of
deficiency. Resolution of this issue depends upon (1) the amount
petitioners realized from the stock redemption and (2) the amount
of petitioners’ basis, if any, in the stock. Cf. sec. 1001(a).
In their petition, petitioners make no reference to
respondent’s disallowance of petitioners’ claimed $109,100 basis
in the CRC shares, nor have petitioners addressed this
determination at trial or on brief. Petitioners have offered no
evidence to substantiate any basis in the CRC shares.
Consequently, we conclude that petitioners have conceded that
they had no basis in the CRC shares, and we confine our
consideration to the amount petitioners realized from the stock
redemption.
Respondent contends that, as reflected on the Form 1099,
CRC paid Tony $166,831 for his redeemed stock. At trial and on
brief, petitioners argue that the Form 1099 was erroneous and
that CRC paid Tony only $50,000 cash for his redeemed stock. In
making this argument, petitioners seem oblivious to the fact that
on their 1992 Federal income tax return, they reported the sale
price of the CRC stock as $159,100.
Relying on Portillo v. Commissioner, 932 F.2d 1128 (5th Cir.
1991), affg. in part and revg. in part T.C. Memo. 1990-68,
petitioners contend that respondent’s determination they received
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