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D. Capital Loss
Petitioner claimed a capital loss of $31,000 on his 1991 tax
return. On brief, petitioner now asserts that he is entitled to
a capital loss of $48,000, which resulted from the sale of his
farm.
The taxpayer bears the burden of proving the loss claimed.
Rule 142(a). “Where the taxpayer does not prove basis this Court
has consistently held that his loss cannot be computed.” Millsap
v. Commissioner, 46 T.C. 751, 760 (1966), affd. 387 F.2d 420 (8th
Cir. 1968).
Petitioner offered only his tax returns and a letter
prepared by his certified public accountant as evidence of the
claimed capital loss.19 “The Commissioner need not accept as
complete, correct, and accurate, the returns filed or the sworn
statement of the taxpayer that his returns completely and
correctly disclose his tax liability.” Halle v. Commissioner, 7
T.C. 245, 250 (1946), affd. 175 F.2d 500 (2d Cir. 1949). The
documents fail to establish the basis in the farm property or the
amount that petitioner realized from the sale of that property.
Therefore, we sustain respondent’s determination that petitioner
is not entitled to a capital loss of $31,000.
19 Petitioner’s certified public accountant did not support
his letter and computation with documentation.
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