- 15 -
Petitioners deducted $2,818.54 on their 1992 return for
costs associated with their purchase of the Springs Road
property. They deducted the following as closing costs:
Item Amount of Expense
Settlement charges $2,746.54
Credit report 97.00
Lawyer fee 80.00
Mailing fees 4.58
Notary fees 10.00
Recording fees 30.00
Roofing permit fee 72.00
Fee to obtain a loan 300.00
broker's license
3,340.12
Petitioners contend that they may deduct those amounts and
an additional $521.58. We disagree.
Petitioners introduced part of a HUD-1 Form which was not
dated and which did not indicate the property to which it
referred except for "400 Springs" written on it. Petitioners
introduced two receipts for certified mail. The recipient of the
mail was Scott Barry (not otherwise identified in the record).
The receipt does not show what was mailed. Petitioners did not
show that they had a business purpose relating to the certified
mail items.
Petitioners paid $300 to the State of California, Department
of Corporations for a loan broker license. The words "400
Springs" is written on the receipt. The receipt is dated
February 21, 1992. Petitioners bought the Springs Road property
in August 1992. We are not convinced that the fee to obtain the
Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 NextLast modified: May 25, 2011