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On the day of the calendar call and trial, petitioner said
that he expected to receive an affidavit from Dunstan and a
medical affidavit. Petitioner did not offer the affidavits into
evidence at trial.
After respondent’s opening brief was filed, petitioner filed
motions to reopen the record to admit (1) an affidavit from
Dunstan regarding the sale of his mutual funds in 2000, and (2)
an affidavit petitioner said pertains to his medical condition.
Petitioner attached Dunstan’s affidavit to his motion
relating to that affidavit. In it, Dunstan states that he had
recently learned that petitioner erroneously interpreted the 2000
mutual fund sale as a tax-free exchange. Petitioner did not
attach an affidavit to the other motion.
OPINION
A. Whether Petitioner’s Sales of Mutual Fund Shares in 2000
Were Like-Kind Exchanges Under Section 1031
Petitioner contends that his sales of mutual fund shares in
2000 are not subject to income tax in that year because they were
like-kind exchanges under section 1031(a)(1). We disagree.
Section 1031(a)(1) expressly does not apply to the sale of stock
or other securities. Sec. 1031(a)(2)(B) and (C). Thus,
petitioner realized taxable income from his sales of mutual fund
shares in 2000.
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