Roger Steven Lewis - Page 6

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          disposition of property is the excess of the amount realized over           
          the adjusted basis of the property.  The amount realized, in this           
          case, is not at issue; however, the basis is at issue.                      
          Generally, under section 1012, the basis of property is its cost.           
               Section 1.1012-1(c)(1), Income Tax Regs., provides generally           
          that, if shares of stock in a corporation are sold or transferred           
          by a taxpayer who purchased or acquired stock on different dates            
          or at different prices, and the stock sold or transferred cannot            
          be adequately identified, the stock sold or transferred is                  
          charged against the earliest of such lots purchased or acquired             
          to determine the cost or basis of the stock and to determine the            
          holding period.  Petitioner's situation fits within this general            
          provision.  The documentation provided by petitioner shows that             
          he had 56.6504 shares in his GE account on October 26, 1994, but            
          the cost and dates of acquisition of these shares is not shown.             
          However, the documentation shows that all transactions that took            
          place in the account from October 26, 1994, until October 25,               
          1995, ranged in a price per share from $50.5625 to $62.9373.  On            
          the basis of section 1.1012-1(c)(1), Income Tax Regs.,                      
          petitioner's basis would be determined by the cost of the 56.6504           
          shares he owned as of October 26, 1994.  The documentation                  
          petitioner presented, as noted above, does not adequately                   
          identify the cost of these shares.  On this record, the Court, in           
          the exercise of its best judgment and discretion, based on the              

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