- 129 -
Petitioner has conceded those items. Respondent has produced
affirmative evidence for each of the items conceded, and he has
proven those items of income by clear and convincing evidence.
Respondent relies upon the gain from the sale of one of the
Grissom Parcels in 1986 as evidence of an underpayment.
Petitioner agrees that he is responsible for $12,042 of gain from
that sale. Respondent has proven that amount by clear and
convincing evidence.
Respondent also relies on the gain from the exchange of
petitioner’s ownership interest in Lots 26, 27, and 28 of the
Arrowhead Lakes Subdivision for Mr. McLaughlin’s ownership
interest in the Angel-Royse Property. In our discussion relating
to whether a deficiency existed with respect to this item, the
record reflected that petitioner was the 100-percent owner of the
lots in the Arrowhead Lakes Subdivision and that he exchanged
those lots for Mr. McLaughlin’s 50-percent interest in the Angel-
Royse Property. There is clear and convincing evidence that
petitioner and Mr. McLaughlin were not involved in a partnership
with respect to both the Arrowhead Lakes Subdivision and the
Angel-Royse Property. We hold that respondent has proven by
clear and convincing evidence that petitioner realized $60,709 of
gain from the exchange of the properties in 1986.
Respondent also relies upon the gain of $92,502 from the
sales of 31 and 31.5 acres of East Lake Vista in 1986. There is
Page: Previous 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 NextLast modified: May 25, 2011