- 20 - As we understand petitioners’ position, they contend that they expended $20,796 on improvements to the condo and that the cost of those improvements, when added to their cost basis in the condo of $165,000, results in their having an adjusted basis in the condo of $185,796, which is the amount of petitioners’ basis that they reported in Schedule D of their 1995 joint return.12 The parties stipulated that petitioners’ adjusted basis in the condo must reflect a reduction of at least $5,491 for the depre- ciation that petitioners claimed in Schedule E of their 1995 joint return. Consequently, according to petitioners, their adjusted basis in the condo at the time of its sale was $180,305 (i.e., basis of $185,796 reported in Schedule D of petitioners’ 1995 joint return reduced by depreciation of $5,491 for 1995 that the parties stipulated should reduce petitioners’ basis). It is respondent’s position that at the time of the sale of the condo in 1995 petitioners’ adjusted basis in the condo was $148,527. In support of that position, respondent contends (1) that peti- tioners have failed to establish that they made the improvements to the condo that they are claiming and (2) that petitioners’ adjusted basis in the condo should be calculated by reducing 12Ms. Stoddard did not specify at trial or on brief the exact amount that petitioners are claiming they incurred for improvements to the condo. The checks on which petitioners rely to support their position with respect to the claimed improve- ments to the condo total $13,983.45. However, we assume that the amount of such claimed improvements is equal to the excess (i.e., $20,796) of the adjusted basis of $185,796 that petitioners claimed in Schedule D of their 1995 joint return over their cost basis in the condo of $165,000 to which the parties stipulated.Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Next
Last modified: May 25, 2011