U.S. Tax Court Upholds IRS Ruling, Finds Taxpayer Liable for Gains, Penalties on Florida Condo Sale

The U.S. Tax Court held that the taxpayer was liable for tax on gain from the sale of a Florida condominium and additions to tax for failure to file, pay, and make estimated tax payments, affirming the IRS’s determinations. The taxpayer, an individual who owned car dealerships, purchased a condominium in the state for $410,000 in 1989 and sold it for $775,000 in 2015. The IRS prepared a substitute return when the taxpayer failed to file a 2015 return and issued a notice of deficiency. The court held that the taxpayer failed to substantiate his claims of a higher adjusted ...