-44-
Fair market value of properties $1,075,000.00
Less:
Basis in notes 130,000.00
Mortgages assumed:
Martis Landing 135,990.00
Saddle Rock
Hawthorne loan 464,300.37
Topa loan 1203,610.12
Delinquent taxes paid:
Martis Landing 4,191.02
Saddle Rock 8,203.72
Mortgage payments:
Martis Landing 2,547.38
Saddle Rock
Topa loan 28,529.53
Mission Viejo National Bank 20,000.00
Martis Landing selling expenses 13,958.00
Gain reported on sale of Martis Landing 10,312.00
2$ 53,357.86
1Respondent's initial calculation used $184,794.94
as the amount of the Topa loan. The parties have
stipulated that the amount of the loan is $203,610.12.
2 Respondent has conceded the difference between
the $74,321 she determined in the notice of deficiency
and the $72,173.04, as she calculated using $184,794.94
as the amount of the Topa loan. We adjust the
concession to reflect the stipulated amount of the Topa
loan set out above.
Petitioners' contention regarding respondent's calculation
is that respondent has not proven the fair market values of the
properties. Respondent bases the value of the properties on
subsequent sales contracts. On October 29, 1991, Martis Landing
was sold for $225,000. On January 1, 1992, petitioners signed an
agreement to sell Saddle Rock for $850,000. Petitioners have not
claimed that these sales were anything other than arm's length
nor have they provided any evidence that the fair market values
of the properties on June 19, 1991, were substantially different
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