- 3 - Petitioner continued his search for a new home and, in July 1989, attempted to purchase another house. Once again, petitioner's application for a loan was denied due to his recent bankruptcy filing and his outstanding obligations under the debt repayment plan. Meanwhile, petitioner found a buyer for his Richmond home, and he agreed to sell the house for $125,000. The grant deed effectuating the transfer was signed by petitioner on July 24, 1989, and the transaction went to settlement on August 1, 1989, at which time the deed was filed with the recorder's office in Contra Costa County. Total proceeds to petitioner were reduced by (among other settlement charges) closing costs of $2,000 and prorated property taxes of $80.44. Settlement charges to the purchaser were $5,735.36, including a loan origination fee of $2,368.75. Petitioner, presumably believing that he would be eligible for nonrecognition treatment under section 1034(a), did not report as taxable income on his 1989 return any gain from the sale of his old residence. During 1989, up to the date he sold the property, petitioner paid $7,532.08 in mortgage interest on his Richmond home. Nevertheless, on his 1989 Schedule A--Itemized Deductions, petitioner reported a home mortgage interest deduction of $11,582, which amount presumably includes the $7,532.08 noted above and a portion of the closing costs and other charges reported on the settlement statement relating to the transfer of the Richmond property.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
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