Opinion
25760-18
09-29-2021
Jonathan Sabag & Deborah Sabag, Petitioners v. Commissioner of Internal Revenue, Respondent
ORDER
Albert G. Lauber Judge
This case was originally calendared for trial on February 24, 2020. After being continued twice, the case is now calendared on the Court's October 4, 2021, Los Angeles, California, trial session, which will be conducted remotely via Zoomgov. On September 23, 2021, petitioners filed a Motion for Continuance, to which respondent objects. We will deny the Motion.
In 2009 petitioners purchased vacant land in Malibu, California, and developed it for use as a residence, which they sold in 2014. On March 8, 2021, the parties filed a stipulation of settled issues representing that the sole issue remaining for trial is the amount of gain petitioners realized on that sale. Because the sale proceeds are not in dispute, petitioners must establish their adjusted basis in the Malibu property.
A motion for continuance filed fewer than 30 days before the trial date "ordinarily will be deemed dilatory and will be denied unless the ground therefor arose during that period or there was good reason for not making the motion sooner." Tax Court Rule 133. Petitioners have been aware since March 2021 that they needed to establish their basis in the Malibu property, but they did not seek a continuance until 10 days before trial. They have supplied no justification for delaying their request until the eleventh hour.
Petitioners seek a continuance to investigate the possibility of hiring an appraiser to opine on the value of the land, including any improvements to the land, as of the date petitioners acquired it in 2009. Our Rules require an expert witness to prepare a written report, which must be submitted to the Court and respondent at least 30 days before the trial date. Tax Court Rule 143(g)(2). Petitioners did not comply with this deadline. They have not explained why they should be allowed to escape the consequences of that failure by securing a continuance.
Finally, we doubt that a retrospective appraisal report would assist the Court in resolving this case. The appraiser would be required to estimate the 2009 value of vacant land, to which certain improvements (such as grading) had allegedly been made, before that land was developed into the residence that now sits upon it. During a conference call to discuss the Motion, petitioners' counsel could not confirm that there exist any photographs, construction plans, or other evidence to establish what the status quo ante of the land was. That being so, it is hard to see how an appraiser could discharge the task petitioners would assign to him.
During the conference call the Court informed petitioners' counsel that his Motion would be denied. The parties then agreed that this case would be set for trial at a time and date certain of 10:00 a.m. Pacific time on Wednesday, October 6, 2021.
Upon due consideration, it is
ORDERED that petitioners' Motion for Continuance, filed September 23, 2021, is denied. It is further
ORDERED that this case is set for trial at a time and date certain of Wednesday, October 6, 2021, at 10:00 a.m. Pacific time, during the Court's October 4, 2021, Los Angeles, California, trial session. The parties shall log in to the remote trial using the same "Meeting ID" and "Passcode" that the Court provided to them in the Notice of Trial, issued on May 5, 2021, at docket entry #31.
This Order constitutes official notice of its contents to the parties.