-6-
business. Neither petitioner nor Mr. Edmondson purchased a house
within 2 years after the date of sale.
Floyd Avenue House
Sometime in 1988, Mr. Edmondson entered into an oral "equity
share" agreement with Wieland and Helen Emery von Behrens (friends
of the Edmondsons). Pursuant to that agreement, the von Behrenses
purchased a house at 1393 Floyd Avenue, in Sunnyvale, California
(the Floyd Avenue house). The von Behrenses held title to the
house, and were the only borrowers on a deed of trust. Mr.
Edmondson agreed to renovate the house in exchange for an eventual
equity interest in the property.3 This arrangement was made
because Mr. Edmondson could not qualify for a mortgage. Petitioner,
Mr. Edmondson, and their respective children lived in the house
during the year in issue.
Petitioner's Present Circumstances
At the time of trial, petitioner supported herself and her
daughter, working as an administrative assistant for a
semiconductor firm. She earned approximately $35,000 a year, and
paid yearly tuition of $5,000 for her daughter to attend private
school. Petitioner also attended night school.
The Edmondsons' 1988 Federal Income Tax Return
The Edmondsons reported an adjusted gross income of $37,611.70
on their 1988 Federal income tax return. Two Schedules C were
3 There is no additional evidence in the record regarding
this arrangement.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011