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aware of that monthly rent.
The accounting firm of Braunstein & Stern (B&S) advised the
Gordons to purchase another principal residence after the sale of
the Roslyn residence in order to defer the recognition of the
gain from the sale of the Roslyn residence by satisfying the
requirements of section 1034.
On November 9, 1988, the Gordons purchased for $420,000 and
titled in both their names another condominium located at One
Lincoln Plaza Condominiums (Lincoln Plaza residence). The
Gordons financed that purchase with (1) cash of $100,000 which
Ms. Gordon provided and for which Mr. Gordon reimbursed her
shortly thereafter and (2) a mortgage loan of $320,000 on which
the Gordons were jointly liable and which required payments of
that amount on or before November 9, 1993, and monthly interest
calculated at 10 percent annually. The $100,000 in cash that Mr.
Gordon paid when the Gordons purchased the Lincoln Plaza resi-
dence made Ms. Gordon whole with respect to the Gordons' using
$100,000 of the proceeds from the sale of the Roslyn residence to
pay off the $100,000 mortgage loan on that residence that Mr.
Gordon utilized in his business activities. The Gordons' total
monthly payment for the Lincoln Plaza residence was, and Ms.
Gordon was aware that it was, approximately $3,000.
The Gordons' Marriage, Lifestyle,
and Household Expenses
Throughout their marriage until some point prior to their
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