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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.
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Last modified: May 25, 2011