The names of the Taxpayers are Willis A. Turner and Irene F The letter advising the...

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The names of the Taxpayers are Willis A. Turner and Irene F The letter advising the Taxpayers of the proposed Turner, and their address is 1099 Margaret Street, Teaneck, New Jersey It is requested that this case be transferred to the Regional office. District Director of Internal Revenue Newark, New Jersey In the Matter of the Federal Income Tax Liability of Willis A. Turner and Irene F. Turner Social Security No. 151-29-1738 for the Taxable Year ended December 31, Year-1 PROTEST The undersigned, Willis A. Turner and Irene F. Turner, respectfuly protest against a proposed assessment of Federal income tax for the taxable year ended December 31, Year-1 as set forth in a letter addressed to them dated September 6, Year and signed by Henry D. Count, Distic Director of Internal Revenue, Newark, New Jersey. (a) 07666. (b) Office of Appeals and that an oral conference be arranged at convenient to that office. (c) /dated September 6, Year and designated by the symbols "AH:T:30B". The BASIS AND ADJUSTED BASIS Pt. F 243 The year involved in this Protest, for which the Taxpayers (d) The amount of the adjustment proposed to be made and to (е) hich the Taxpayers take exception is as follows: beltn Item e disallowed loss on Subdivision Tract Amount $16,000 (f) The agent disallowed the above deduction on the following ground: (1) Property in question was sold at a loss between spouses, which loss was disallowed under § 267. When the property was subsequently sold to a third party, the basis should have been limited to § 1012 basis or the § 267(d) basis if greater or under $ 1041 treated as a gift with the basis determined under § 1015(a). Loss on Subdivision Tract Mr. and Mrs. Turner have held singly and jointly various tracts of land which they have subdivided and sold to customers in the course of their trade or business. The tract in question was originally purchased by Mr. Turner for $40,000 on January 14, Year-4. On March 3, Year-1, Mr. Turner, at the request of his individual creditors, sold the tract to Mrs. Turner for S20,000. Since the transaction took place between spouses, no loss was cialmed by the Taxpayers pursuant to § 1041. On December 4, Year-1, MIS. Turner sold the tract in question for $24,000 to Heritage Construction, d Inc. F. ey Section 1041(a) provides for the nonrecognition of loss on transfers of any transfers described in 1041(a), nal me "(1) for purposes of this subtitle, the property shall be treated as acquired by the transferee by gift, and sed t is (2) of the transferor". the basis of the transferee shall be the adjusted basis The undersigned, PETER C. CANELLOS, assisted in the preparation the information contained therein is true, on the basis of a review of documents and statements made by the Taxpayers, he believes such of the foregoing Protest. While he does not know of his knowledge whether SALES AND DISPO 244 more specific provision shall be deemed to apply. See, Sutherland Statutes and Statutory Construction §§ 46.04 & 47.11 (4th ed. N S A 1972-73). Therefore, under § 1041(b), Mrs. Turner is entitled to a basis ed $40,000 in the tract resulting in a loss of $16,000 for the year in question For the foregoing reasons, the Taxpayers respectfully protest against the above mentioned portion of the proposed assessment of Federal income tax deficiencies for their taxable year ending December 31, Year-1. The Taxpayers certify under the penalties of perjury that the statements of fact contained herein are true to the best of their knowledge, information and belief. Respectfully submitted, Willis A. Turner Willis A. Turner Irene F. Turner Irene F. Turner September 23, Year STATEMENT OF ATTORNEY information to be true. Peter C. Canellos Peter Canellos The names of the Taxpayers are Willis A. Turner and Irene F The letter advising the Taxpayers of the proposed Turner, and their address is 1099 Margaret Street, Teaneck, New Jersey It is requested that this case be transferred to the Regional office. District Director of Internal Revenue Newark, New Jersey In the Matter of the Federal Income Tax Liability of Willis A. Turner and Irene F. Turner Social Security No. 151-29-1738 for the Taxable Year ended December 31, Year-1 PROTEST The undersigned, Willis A. Turner and Irene F. Turner, respectfuly protest against a proposed assessment of Federal income tax for the taxable year ended December 31, Year-1 as set forth in a letter addressed to them dated September 6, Year and signed by Henry D. Count, Distic Director of Internal Revenue, Newark, New Jersey. (a) 07666. (b) Office of Appeals and that an oral conference be arranged at convenient to that office. (c) /dated September 6, Year and designated by the symbols "AH:T:30B". The BASIS AND ADJUSTED BASIS Pt. F 243 The year involved in this Protest, for which the Taxpayers (d) The amount of the adjustment proposed to be made and to (е) hich the Taxpayers take exception is as follows: beltn Item e disallowed loss on Subdivision Tract Amount $16,000 (f) The agent disallowed the above deduction on the following ground: (1) Property in question was sold at a loss between spouses, which loss was disallowed under § 267. When the property was subsequently sold to a third party, the basis should have been limited to § 1012 basis or the § 267(d) basis if greater or under $ 1041 treated as a gift with the basis determined under § 1015(a). Loss on Subdivision Tract Mr. and Mrs. Turner have held singly and jointly various tracts of land which they have subdivided and sold to customers in the course of their trade or business. The tract in question was originally purchased by Mr. Turner for $40,000 on January 14, Year-4. On March 3, Year-1, Mr. Turner, at the request of his individual creditors, sold the tract to Mrs. Turner for S20,000. Since the transaction took place between spouses, no loss was cialmed by the Taxpayers pursuant to § 1041. On December 4, Year-1, MIS. Turner sold the tract in question for $24,000 to Heritage Construction, d Inc. F. ey Section 1041(a) provides for the nonrecognition of loss on transfers of any transfers described in 1041(a), nal me "(1) for purposes of this subtitle, the property shall be treated as acquired by the transferee by gift, and sed t is (2) of the transferor". the basis of the transferee shall be the adjusted basis The undersigned, PETER C. CANELLOS, assisted in the preparation the information contained therein is true, on the basis of a review of documents and statements made by the Taxpayers, he believes such of the foregoing Protest. While he does not know of his knowledge whether SALES AND DISPO 244 more specific provision shall be deemed to apply. See, Sutherland Statutes and Statutory Construction §§ 46.04 & 47.11 (4th ed. N S A 1972-73). Therefore, under § 1041(b), Mrs. Turner is entitled to a basis ed $40,000 in the tract resulting in a loss of $16,000 for the year in question For the foregoing reasons, the Taxpayers respectfully protest against the above mentioned portion of the proposed assessment of Federal income tax deficiencies for their taxable year ending December 31, Year-1. The Taxpayers certify under the penalties of perjury that the statements of fact contained herein are true to the best of their knowledge, information and belief. Respectfully submitted, Willis A. Turner Willis A. Turner Irene F. Turner Irene F. Turner September 23, Year STATEMENT OF ATTORNEY information to be true. Peter C. Canellos Peter Canellos

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