5
their 1995 return. In 1997, respondent prepared and processed a
substitute for return for petitioner’s 1995 tax year.
OPINION
A. Petitioner’s Basis in Property Related to His Chevron Gas
Station Business
1. Contentions of the Parties
Petitioner had an original basis of $65,000 in the Chevron
gas station business in 1988. Respondent contends that
petitioner’s basis in property related to the Chevron gas station
business that he sold in 1995 was zero. Petitioner contends that
his basis in 1995 in the property (other than the land and
building) related to the Chevron gas station business was the
$65,000 purchase price plus $99,000 for improvements to the
Chevron gas station.1
2. Whether Petitioner Bought and Sold Only Intangible
Property
Petitioner testified that he bought and sold only a non-
depreciable right to use the Chevron name and that he did not buy
1 By pretrial order, we ordered the parties to file
pretrial memos. At trial, we ordered the parties to file
posttrial briefs. Respondent complied with these orders;
petitioner did not. Under these circumstances, it would be
appropriate to default petitioner on all issues for which he
bears the burden of proof. Stringer v. Commissioner, 84 T.C.
693, 704-708 (1985), affd. without published opinion 789 F.2d 917
(4th Cir. 1986); Furniss v. Commissioner, T.C. Memo. 2001-137;
McGee v. Commissioner, T.C. Memo. 2000-308; Pace v. Commissioner,
T.C. Memo. 2000-300; Hartman v. Commissioner, T.C. Memo. 1999-
176. However, we decide this case on the record as it stands.
Our understanding of petitioner's position is based on his
petition, opening statement, and trial testimony.
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