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proving that they are entitled to the casualty loss deduction
that they are claiming for 1997.11
Long-Term Capital Gain From the Sale of the Condo
Respondent determined in the notice that petitioners real-
ized for 1995 a long-term capital gain of $211,000 from the sale
of the condo and that they understated the amount of such gain in
their 1995 joint return by $185,796. Respondent concedes that
that determination in the notice was wrong in that respondent no
longer maintains that, in calculating the amount of such gain,
petitioners’ basis in the condo at the time of its sale was zero.
It is respondent’s position that petitioners’ adjusted basis in
the condo was $148,527 when they sold it for $211,000, that they
realized $62,473 of long-term capital gain from that sale, and
that they understated the amount of such gain in their 1995 joint
return by $37,269.
The parties stipulated that petitioners’ cost basis in the
condo at the time of its sale was $165,000 and that they sold the
condo in 1995 for $211,000. The only dispute between the parties
with respect to the sale of the condo is the amount of petition-
ers’ adjusted basis for determining the amount of long-term
capital gain that they realized and must recognize for 1995 from
that sale.
11In light of our finding that petitioners have not estab-
lished their entitlement to a casualty loss deduction for 1997,
we find that petitioners have failed to establish that they are
entitled to the claimed NOL deductions for 1995 and 1996. See
supra note 8.
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