- 4 - date of transfer, and an adjusted basis of $349,774.06 in the hands of petitioners on that date. As of that date, the Clinton Way Property was encumbered by a deed of trust in favor of Standard Insurance Company securing a note (the Standard Insurance Note) having an unpaid principal balance of $1,386,654.50. NAC Corporation did not assume liability under the Standard Insurance Note, on which petitioners remained personally liable. The second and third of the three parcels of real property which petitioners transferred to NAC Corporation, collectively referred to herein as the Fresno/Herndon Property, had a fair market value of $1,200,000 on December 26, 1989, the date of transfer, and an adjusted basis of $631,632.42 in the hands of petitioners on that date. As of that date, the Fresno/Herndon Property was encumbered by a deed of trust securing a note (the Bunn & Duran Note) in favor of certain individuals having an unpaid principal balance of $161,558.28. NAC Corporation did not assume liability under the Bunn & Duran Note, on which petitioners remained personally liable. The parties agree, however, that the Fresno/Herndon Property, when transferred to NAC Corporation, remained "subject to" the Bunn & Duran Note. The following table reflects the computation of the excess of the above-described liabilities over petitioners' combinedPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011