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petitioners’ basis in the residence. Sec. 263; secs. 1.212-1(k),
1.263(a)-2(c), Income Tax Regs; United States v. Hilton Hotels
Corp., 397 U.S. 580 (1970). The Court further recognizes that
Mrs. Bettencourt and her siblings lived distances away from the
property and incurred some expenses in keeping track of the
property, including periodic visits to the property. Since the
residence has a value of $400,000, the Court recognizes that Mrs.
Bettencourt and her siblings felt the need to monitor it and, in
so doing, incurred expenses. Petitioners, therefore, are
entitled to an increase in basis of $5,000 to reflect the cost of
both legal fees and monitoring the residence. With respect to
the remainder of the amounts claimed by petitioners, respondent
is sustained.
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011