- 5 - Generally, we will not consider issues that are raised for the first time at trial or on brief. Foil v. Commissioner, 92 T.C. 376, 418 (1989), affd. 920 F.2d 1196 (5th Cir. 1990); Markwardt v. Commissioner, 64 T.C. 989, 997 (1975). Accordingly, we shall not consider whether to place the burden of proof upon respondent.7 B. General Rule Generally, a taxpayer must recognize income from the discharge of indebtedness. Sec. 61(a)(12); United States v. Kirby Lumber Co., 284 U.S. 1 (1931). The documentary evidence in addition to the Form 1099-C and the testimony of a representative of Advanta established: (1) Ms. Yeager borrowed $75,000 from Advanta; (2) she did not repay the $75,000 loan; (3) Advanta foreclosed on the property securing the $75,000 loan; (4) Advanta sold the property securing the $75,000 loan; (5) Advanta discharged the indebtedness of Mr. Babcock and Ms. Yeager; and (6) Advanta issued Ms. Yeager a Form 1099-C reporting the amount of canceled debt as $21,975. On the basis of the evidence in the record, we conclude that in 1995 Ms. Yeager had $21,975 of COD income. 7 The resolution of whether Ms. Yeager had COD income does not depend on which party has the burden of proof. We resolve this issue on the basis of a preponderance of evidence in the record.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
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