David Dobrich and Naomi Dobrich - Page 10

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          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 replacement                  





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