- -18 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 1986Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
Last modified: May 25, 2011