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gain should be recognized in 1987. Respondent contends that the
purchase agreement was correctly dated December 28, 1986, that
the purchase agreement was not an effective conveyance of
petitioner's interest in the Third Street property, and that the
requirements under the statute of frauds were not satisfied by
the purchase agreement so as to permit that agreement to
constitute a valid transfer of the property. Respondent
maintains that the quitclaim deed dated December 1987 conveyed
the Third Street property from petitioner to the law partnership,
and at that time petitioner realized income from the sale of the
property when his indebtedness on the property was discharged by
the law partnership.
We conclude, as we have set forth in our findings, that the
purchase agreement was executed on December 10, 1985. We accept
the testimony of petitioner and Mr. Moosbrugger that the purchase
agreement between petitioner and the law partnership was
erroneously dated December 10, 1986, rather than the proper date,
December 10, 1985. Mr. Moosbrugger testified that he was certain
the correct date of the purchase agreement was December 10, 1985,
and not December 10, 1986. Also, the language of the purchase
agreement makes it clear that the correct date is sometime before
January 1986. For instance, the purchase agreement states "From
January 1, 1986 through December 31, 1986, Seller shall be paid".
The purchase agreement further states: "During the year 1986
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