- 14 -
$360,000, but that a sale never came to fruition. As of Novem-
ber 1, 1995, the date of trial, the Eudora property was encum-
bered by three deeds of trust securing obligations totaling
approximately $650,000 to the Aurora National Bank. Petitioner
believes his equity in the Eudora property to be approximately $1
million. In addition to the Eudora property, petitioner also
owns his personal residence and the property adjacent to his
residence. Petitioner testified that the property adjacent to
his personal residence has a value of at least $200,000.
Respondent argues petitioner is unable to repay the moneys
advanced to him by Goshorn. The secured loans encumbering the
Eudora property amount to $650,000. Petitioner also owes
approximately $400,000 for unpaid unemployment taxes for his
corporations; Goshorn, Racon, and Tek-Pak. Additionally,
petitioner is personally liable for $50,000 of unpaid debts of
Goshorn. In total, petitioner owes various creditors $1.1
million dollars. Other than his testimony, the record is devoid
of anything to support petitioner's valuation of the Eudora
property, his residence, or the property adjacent to his resi-
dence. Petitioner bears the burden of proof. Rule 142(a).
There is nothing in the record to support petitioner's contention
that he had the ability to repay the amounts in question. There-
fore, we agree with respondent that petitioner has failed to
prove that he owns assets that equal the amount of his debt.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011