- 4 - Schwalbach and Dr. Knotek. Dr. Schwalbach and Dr. Knotek also referenced a professional publication of the American Dental Association, looking specifically at a rent factor guideline stated therein. Dr. Schwalbach and Dr. Knotek's discussions ended on or near January 1, 1992, when Dr. Knotek purchased from Dr. Schwalbach 50-percent interests in petitioner and its office equipment. Contemporaneously therewith, on January 1, 1992, Dr. Schwalbach and Dr. Knotek, in their capacities as officers of petitioner, signed a lease with the Schwalbachs under which the Schwalbachs relet to petitioner the building's parking lot and the 3,600-square-foot area that it already occupied for a 5-year term ending on December 31, 1996. Petitioner agreed to pay the Schwalbachs $4,500 per month, plus pay all utilities that it used, all insurance on the building, and all real estate and personal property taxes that were related to the building. Real estate taxes paid in 1992 through 1994 totaled $8,777, $9,113, and $8,153, respectively. In 1993, Dr. Schwalbach relet to Dr. Nelson the 1,200-square-foot space that he already occupied for a 5-year term ending May 31, 1998, at a rate of $8,400 per year (i.e., $7 per square foot). Dr. Nelson practiced full time in Hastings, Minnesota, and he used the leased space 1 day a week; petitioner had the right to use the space when Dr. Nelson did not. Dr.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011