- 2 -
6662(a)1 in the amount of $10,690. Respondent also determined a
deficiency in petitioner Ridgemark Corp.’s 1989 Federal income
tax in the amount of $2,488,051 and a penalty under section
6662(a) in the amount of $497,610.
After concessions, the issues remaining for our
consideration are: (1) Whether real property held and exchanged
in 1989 by petitioner Ridgemark Corp. qualifies for income tax
deferral pursuant to section 1031; and (2) whether petitioners
Ridgemark Corp. or Loren F. and Donna Paullus are separately
liable for penalties under section 6662(a).
FINDINGS OF FACT2
Petitioner Ridgemark Corp. (Ridgemark) is incorporated, and
its principal place of business at the time its petition was
filed was Hollister, California. Petitioners Loren F. and Donna
Paullus (petitioners), at the time their petition in this case
was filed, resided in Paicines, California. Loren F. Paullus
(Paullus) was president of Ridgemark from 1971 until March 1992.
He also served on Ridgemark’s board of directors.
Paullus owned and operated a 110-acre turkey ranch in
Hollister, California, which he considered developing into a golf
1 Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the taxable year under
consideration, and all Rule references are to this Court’s Rules
of Practice and Procedure.
2 The parties’ stipulation of facts and exhibits are
incorporated in this opinion by this reference.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011