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from the sales of the lots and the tract. We find that
petitioner received the amounts determined by respondent as
income for the years in issue and they are taxable as gains
derived from dealings in property. See sec. 61(a)(3).
3. High Plains Property (OS-35)
FINDINGS OF FACT
On June 29, 1977, petitioner, as trustee, through Mr. Miles,
as trustee, purchased real property in Osceola County, Florida,
which we refer to as the “High Plains Property” (OS-35), from
William F. Mitchell, for $448,000. The High Plains Property was
a large piece of property (a couple hundred acres) which was
divided into 5-acre tracts.
On May 30, 1985, petitioner through Ms. Allen, as trustee,
sold a lot (Lot 23) in the High Plains Property to Clarence L.
Bass for $27,000. A gain of $19,699 was realized from the sale
of this lot in 1985. Petitioner did not report any income from
the sale on his Form 1040 for any tax year.
Wayne Schoolfield and petitioner each originally owned a 50-
percent interest in the High Plains Property. Indeed, a
declaration of trust dated April 11, 1977, provides:
MADE this 11th day of April 1977 by and between D.
L. Allen, hereinafter referred to as Allen and C. Wayne
Schoolfield and W. L. Medlin, Trustee as Beneficiaries.
NOW, THEREFORE, Allen, in consideration of $1.00
and other valuable considerations, hereby declares that
she as Trustee holds in trust (for the beneficiaries
herein named) that certain Offer to Purchase Contract
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