- 9 - The basic issue in the instant case--whether the nonrecourse debt should be included in the amount realized upon transfer of the computer to the School--was not altered by the increase in the deficiency asserted by respondent. Petitioners had full opportunity to meet the claim for an increased deficiency because it was apparent from the outset of this suit that respondent included the "nonrecourse debt" in the amount realized by petitioners from the transfer of the equipment, and they themselves stipulated the document which showed that the debt was $1,540,280 rather than $1,017,248, thus giving rise to the corresponding assertion of an increased deficiency. We find that justice requires that we allow respondent’s answer to be amended. Rule 41(a). Accordingly, respondent’s motion to amend her answer to conform to the evidence so as to assert an increased deficiency will be granted. Respondent has the burden of proving, however, that petitioners are liable for the increased deficiency. Rule 142(a). Issue 1. Income From the Disposition of the Equipment Leasing Interest Respondent asserts that petitioners’ amount realized from the transfer to the School must include the obligation under the FDC note as a consequence of the School’s assumption of the note. Petitioners argue that the note was not assumed by the School and, furthermore, that the note was illusory.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011