- 9 - evidence petitioner submitted to the Appeals Office and his testimony to determine his tax liability. Petitioner seeks to establish his bases in assets that were sold in the taxable year. Although it would have obviously been preferable had petitioner filed a return for 1999, we find petitioner’s testimony regarding his bases to be credible and to be corroborated in large part by the documentation he submitted to the Appeals Office. On the basis of our de novo review of this evidence, we find petitioner had a capital loss for the taxable year 1999 before considering the sale of Bidwell stock for $9,625. Petitioner presented no evidence regarding his basis in that stock, but the loss established by the evidence we have accepted exceeds the Bidwell sale proceeds and the $232 in interest income petitioner received in 1999. In addition, petitioner’s mortgage interest deduction is consistent with documentary evidence respondent presented, and it is allowable. Accordingly, we find on the evidence before us that petitioner does not have an outstanding tax liability for 1999. On this record, there is no tax liability to collect for 1999. Therefore, respondent’s collection action regarding tax and additions to tax for 1999 is not sustained. To reflect the foregoing, Decision will be entered for petitioner.Page: Previous 1 2 3 4 5 6 7 8 9
Last modified: May 25, 2011