James V. Abrams and Laurie Abrams - Page 14




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          at the date of conversion was substantially less than                       
          petitioners’ purported FMV of $480,000.  Further, the fact that             
          the property eventually sold for $435,000 in December 1996                  
          indicates there had been little if any change in its FMV from               
          July 1995 until the date of its sale.                                       
               For the above reasons, we hold that the FMV of the Stewart             
          property in July 1995 was $435,000, and, therefore, petitioners             
          did not sustain a loss on the subsequent sale of the Stewart                
          property on December 27, 1996, for $435,000.  Accordingly, we               
          sustain respondent’s determination on this issue.6                          
               We have considered all of the other arguments made by the              
          parties, and, to the extent that we have not specifically                   
          addressed them, we conclude they are without merit.                         











               6  Accordingly, petitioners have a gain in 1996 in the                 
          amount of $5,999 calculated as follows:                                     
               Sales Price                        $435,000                            
               Less Adjusted Basis ($435,000 FMV                                      
               less $5,999 depreciation)          429,001                             
               Total Gain                         5,999                               
          However, at trial respondent waived any increased deficiency for            
          1996.                                                                       





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