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address. The properties in which petitioner owned interests were
rented out.
On July 2, 1987, petitioner lent $38,000 to Ms. Marshall.
This loan, which had a rate of interest of 12 percent per annum,
was secured by Ms. Marshall's interests in the three Knoxville
properties in which she and petitioner each owned 50-percent
interests. Of the $38,000 lent, approximately $17,000 was used
by Ms. Marshall for her share of the downpayment on the purchase
of her one-half interest in the property located at 1365
Armstrong Avenue. The remaining $21,000 was used by Ms. Marshall
to avoid foreclosure of the property she owned at 1424 Armstrong
Avenue. Since the rental office was located at that address and
potential tenants saw this property first, petitioner considered
the 1424 Armstrong Avenue property to be the "anchor" or
"showcase" for the remainder of the rental real estate he had
interests in. Accordingly, he wanted to avoid foreclosure of
that property and, therefore, agreed to the use of the $21,000 by
Ms. Marshall on this property.
In June 1990, petitioner advanced $4,962.95 to Ms. Marshall
for the purpose of paying the mortgage creditors on the 1000
Thompson Place property the monthly mortgage payments from
January through May 1990, which Ms. Marshall had not paid. Ms.
Marshall failed to remit the $4,962.95 to the mortgage creditors,
and petitioner made the payment himself to the creditors.
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