William Lenihan - Page 12

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          respect to Kemper, he reported proceeds of $1,507, cost or other            
          basis of $1,288, and a resulting gain of $219.  The parties’                
          disagreements over the amounts of petitioner’s gains result from            
          their disagreements over his costs of acquiring his interests in            
          Oxford and Kemper.  The parties also disagree with respect to the           
          character of the gains and the availability of a loss carryover.            
                    b.  Petitioner’s Costs of Acquiring His Interests in              
                    Oxford and Kemper                                                 
               To determine gain realized on the sale of property, we must            
          subtract from the proceeds the taxpayer’s cost or other basis in            
          the property.  See sec. 1001(a).  Respondent proposes that we               
          find that petitioner had cost bases of zero in his interests in             
          both Oxford and Kemper, so that the gains he realized on the                
          sales of both equaled the proceeds received; viz, $3,406 and                
          $1,507, respectively.  Respondent supports his proposed findings            
          of zero bases by directing us to a one-page joint exhibit, an               
          Internal Revenue Service (IRS) Form 1099-B, Proceeds from Broker            
          and Barter Exchange Transactions, which, among other things,                
          shows gross proceeds of $3,407 and $1,507 from sales of his                 
          interests in Oxford and Kemper, respectively, but does not show             
          any cost or other basis for either asset.  While petitioner has             
          made no objection to respondent’s proposed findings, he does                
          claim that brokerage statements showing costs and selling prices            
          for those assets were forwarded to respondent, and, in support of           
          that claim, he refers us to the Form 1099-B (which shows nothing            





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