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On February 8, 1999, a check for $5,000, payable to Mr.
Doxtator, and drawn by Melinda Doxtator, his mother, cleared her
account.
Petitioners reported no capital gains on their 1999 return.
Respondent determined that petitioners received $15,720 in 1999
from the sale of stocks in which they had a basis of $14,720,
resulting in short-term capital gain of $1,000 in 1999.
Respondent further determined that petitioners had long-term
capital gain of $146 in that year.
Dividend Income
Petitioners reported no dividend income on their 1999
return. Respondent determined that petitioners failed to report
$281 of taxable dividends in 1999.
Oneida Tribe payments
During 1999, petitioners each received $1,500 from the
Oneida Tribe and were issued Forms 1099 that reported these
payments as nonemployee compensation.
The payments constituted a distribution of the profits from
a casino owned and operated by the Oneida Tribe. The casino (and
an associated hotel) were built on land purchased by the Oneida
Tribe from "noncompetent"5 Tribe members in 1968. The Tribe
5 "A noncompetent Indian is one who holds allotted lands
only under a trust patent and may not dispose of his property
without the approval of the Secretary of the Interior. It does
not denote mental incapacity." Stevens v. Commissioner, 452 F.2d
(continued...)
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