7 desired replacement properties); in fact none were asked, and none were performed. On September 20, 1991, the corporation notified the Citizens National Bank, as escrow agent, of the designation of three properties which the corporation intended as replacement properties for the purposes of section 1031(a)(3). These properties were designated as the "McClure quarries in Tennessee Township, Colchester, Illinois," which were not acquired by the corporation; the Coggeshall property; and "property zoned M-2 located south and east of Route 41 in Galesburg Township, Knox County, Illinois" (owner and size not specified). On January 30, 1992, the corporation, Scott Coggeshall, and the Coggeshall Co. executed a purchase agreement (Coggeshall purchase agreement) with respect to the Coggeshall property for a total purchase price of $577,370, including $321,000 for the real estate owned by Scott Coggeshall and the asphalt plant located thereon owned by the Coggeshall Co. and $256,370 for other miscellaneous equipment, including the asphalt plant owned by the Coggeshall Co., but located on land owned by Collins. Payment for this purchase was accomplished by an immediate payment of $300,000 at closing to the sellers, as a downpayment, with the $277,370 balance to be payable over 4 years. This arrangement for deferred payment was solemnized by a second escrow agreement established by the parties with the Citizens National Bank of Macomb. The Coggeshall property was to be held by thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011