Marvin E. DeBough v. Commissioner

OPINION

Nega, Judge:

Respondent determined a deficiency in petitioner’s Federal income tax under section 1038(b) 1 of $58,893 for taxable year 2009. The sole issue in this case is whether petitioner underreported his long-term capital gains as a result of his failure to recognize gain pursuant to section 1038 on the reacquisition of property where gain had been previously excluded under section 121.

Background

All of the facts in this case, which the parties submitted under Rule 122, have been stipulated by the parties and are so found except as stated below. Petitioner resided in Delano,…