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1988, together with the monthly statements for 1988 (all of which
were placed in evidence during the trial) (the Merrill Lynch
statements) constitute a copy of his 1988 account activity with
Merrill Lynch. The monthly statement for June 1988 shows that,
on June 17, 1988 (the date of petitioner’s arrest and
incarceration), petitioner’s account was credited with $27,573
representing the proceeds from the sale of the IBM stock (the IBM
sale proceeds). It further shows that, after the sale, on June
21, 1988, a check for $22,960 was written on the account and
identified as a “withdrawal” from the account.
Whether or not Merrill Lynch sold the IBM stock at
petitioner’s request, there is no dispute that the stock was in
fact sold and that the IBM sale proceeds were credited to
petitioner’s Merrill Lynch account.
Pursuant to section 61(a)(3), gross income includes “[g]ains
derived from dealings in property”. Section 1.446-1(c)(1)(i),
Income Tax Regs., requires that, “under the cash receipts and
disbursements method in the computation of taxable income, all
items which constitute gross income * * * are to be included for
the taxable year in which actually or constructively received.”
Section 1.451-2(a), Income Tax Regs., provides that income is
constructively received by a taxpayer “in the taxable year during
which it is credited to his account, set apart for him, or
otherwise made available so that he may draw upon it at any
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