- 10 - sample letter was dated September 5, 1989, and addressed to petitioner husband. Petitioners received this sample letter before they expressed an interest in acquiring either Pleasant Hill or Skyland to Mr. Clack. In January 1990, petitioner husband also wrote a letter to Mr. Clack which purported to identify five possible replacement properties, including the Pleasant Hill and Skyland properties. Petitioner husband backdated the letter to September 18, 1989, the date of the Van Voorhis letter identifying potential replacement property. Petitioners reported the transfer of the Antioch property on their 1990 tax return as a section 1031 exchange qualifying for nonrecognition of gain and reported that they identified replacement property on September 18, 1989. Respondent determined that the transaction did not qualify as a section 1031 exchange because petitioners did not timely identify the replacement property. Accordingly, respondent determined that petitioners must report the gain realized on the Antioch property. Petitioners' accountant relied on the false letters solicited by petitioner husband from Ms. Love and Mr. Fivey to prepare petitioners' 1989 and 1990 tax returns. Petitioners indicated to their accountant that they exchanged the Antioch property pursuant to section 1031 and that the replacementPage: 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