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a. 1986-1987 Property Taxes
The parties now concur that petitioners' basis in Crow
Canyon includes the property taxes that accrued prior to their
ownership.
b. Commission
Petitioners claim that they paid a $23,000 commission to
John when they bought Crow Canyon. This commission was not
substantiated.
The purchase agreement provided:
Buyer and Seller acknowledge, understand and agree that
neither Buyer nor Seller are obligated for any
commission whatsoever in connection with the sale of
the Property, including Joe Mefford Realty.
The so-called commission of $23,000 is 16.55 percent of the
$139,000 purchase price. Furthermore, this commission was
payable, if at all, to John. While an unusually large commission
paid to a relative might, in some situations, be justifiable, the
facts in this case do not support such a conclusion.
Petitioners offer as proof only self-serving documents
prepared by John. There is no reliable evidence that petitioners
actually incurred the cost of the commission. They claim that
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