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paid the purchase price by presenting a check in the amount of
$58,400, using $10,000 that he had previously given to an escrow
company as an earnest money deposit and financing the balance
through Long Beach Bank by way of a deed of trust on which he was
solely liable. Rueben Moreno was listed on the deed as the sole
owner of the Tamarac Property.
On July 14, 1994, Rueben Moreno transferred the Tamarac
Property to himself and his wife Teresa Moreno as joint tenants.
Four months later, Rueben and Teresa Moreno transferred the
Tamarac Property to themselves and petitioner as joint tenants.
On November 8, 1995, petitioner reconveyed his interest in the
Tamarac Property to Rueben and Teresa Moreno as joint tenants.
Petitioner and Rueben and Teresa Moreno resided at the
Tamarac Property during all relevant times. Petitioner did not
deduct the mortgage interest paid on the Tamarac Property on his
1993, 1994, or 1995 Federal income tax return. Rueben Moreno
did.
Respondent determined that petitioner failed to replace the
Goleta Property within the replacement period, and that,
accordingly, petitioner's 1992 gross income included his $114,449
gain on the property's sale. Petitioner petitioned the Court on
June 3, 1996, to redetermine respondent's determination.
Petitioner alleged in his petition that he met the requirements
under section 1034 which would defer his gain. Petitioner
further alleged that Rueben Moreno's name was used on the
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