In 1994, petitioner and Mrs. Wood entered into a contract to
sell the undeveloped land in Florida, but the buyer failed to
perform under the contract.
On April 29, 1994, petitioner and Mrs. Wood filed for
bankruptcy under chapter 11 of the Bankruptcy Code (chapter 11)
in the U.S. Bankruptcy Court for the Southern District of Florida
petitioner and Mrs. Wood
sold the New Jersey house for $334,000.
They incurred $20,300 of
depreciation for the 3-
year period the house was rented totaled
On September 13, 1994, the Internal
Revenue Service (IRS)
filed with the bankruptcy court a
proof of claim, claiming an
unsecured nonpriority claim of $2
,200 and an unsecured priority
claim of $20,389.54.
On January 18, 1995, petitio
ner and Mrs. Wood filed with the
bankruptcy court their chapter 11
plan of reorganization.
Pursuant to the plan, the bankrup
tcy court retained jurisdiction
of the case until all payments an
d distributions called for under
noted that the Florida house
had been listed with a licensed r
ealtor for sale for $994,900.
By order dated February 6, 1
995, the bankruptcy court
confirmed the plan of reorganizat
that, except as provided in Debtors are discharged from
the Plan, the individual any debt that arose before