Roger L. Sherer - Page 9

                                        - 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