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The Second Amended Joint Return
After petitioner and Apostle were divorced, petitioner filed
a second amended joint Form 1040X and attachments for 1989
(second amended joint return) on November 17, 1994. Apostle
neither signed nor consented to the filing of the second amended
joint return.
The second amended joint return also included a Form 2119.
Petitioner neither claimed the one-time exclusion from the gain
realized on the sale of the New York apartment under section 121
nor elected to defer recognition of any portion of the gain
realized on that sale under section 1034. By not claiming the
section 121 exclusion or making the section 1034 election on
Form 2119, petitioner recognized the entire $564,000 gain
realized on the sale of the New York apartment.
Petitioner reported the $564,000 gain on Schedule D of the
second amended joint return. Like the first amended joint
return, a portion of the $564,000 gain reported on Schedule D was
offset by a long-term capital loss carryover of $166,865 and a
short-term capital loss carryover of $6,870. As a result of
including this $564,000 gain on Schedule D, petitioner reported
total income of $441,894. Based upon this amount of total
income, the total tax shown on the second amended joint return
was $118,120. After subtracting the total tax shown on the first
amended joint return (i.e., $39,047), petitioner owed income tax
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