Albert Dudley Thrower - Page 4

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          return * * * signed under oath.”  The purported return is dated             
          September 8, 2002–-2 days before trial.  On line 18 (“Rents,                
          royalties, partnerships, estates, trusts, etc.”) of the purported           
          return, petitioner listed $445,354 of net rental income--a                  
          significantly greater amount than respondent had determined in              
          the notice of deficiency--representing $1,212,140 of rents                  
          received, reduced by $98,499 of depreciation expense and $668,287           
          of other rental expenses.  On line 15 (“Other gains or (losses)”)           
          of the purported return, petitioner listed $2,283,273 of alleged            
          losses which he contends resulted from “involuntary conversion”             
          of his forfeited rental properties.                                         
               After trial, with leave of the Court, respondent filed an              
          amendment to his answer, asserting an increased deficiency and              
          additions to tax in conformity with the evidence that                       
          petitioner’s 1988 net rental income is $445,352.4                           
               Petitioner has not sought to retract or disavow his                    
          admissions on the purported return as to the amounts of his gross           
          rental income, rental depreciation expense, and other rental                
          expenses.  He argues, however, that his net rental income is more           
          than offset by the $2,283,273 of losses that he claimed on the              
          purported return.                                                           


               4 Respondent attributes to rounding the $2 difference                  
          between the amounts of net rental income indicated on the                   
          purported return and as calculated in the amended answer.                   






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