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those statements as deposits in escrow and as amounts due from
the buyer to the seller match amounts listed as deposits in the
ledger cards above, ledger card No. 70008 (lines 16 and 21), No.
70007 (line 15), and No. 70006 (lines 6-8).
Dr. Gant and petitioner each owned a 50-percent interest in
the “Mefford Property” (OS-22), which was sold on October 7,
1988, for $250,000. A gain of $110,328 was realized from this
sale. Respondent originally determined that petitioner was
responsible for the entire gain realized from this sale, but he
now concedes that petitioner is responsible for only half of that
amount ($55,164).
Dr. Gant and petitioner also each owned a 50-percent
interest in a piece of property which we refer to as the “Tai
Property”. The Tai Property was sold in 1984 for $457,900, and
petitioner concedes that he is liable for 50 percent of the
installment gain ($50,863) from payments received in 1985. See
appendix C.
OPINION
It is well established that income must be taxed to him who
earns it, United States v. Basye, 410 U.S. 441, 449 (1973), and
that income includes gains derived from dealings in property.
Sec. 61(a)(3). Respondent determined that petitioner owned a 50-
percent interest in the portions of East Lake Vista sold in 1986
and 1988 and that he was responsible for 50 percent of the gain
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