- 9 - On the evidence presented, we cannot find that petitioner received $500 in cash, plus the cost of utilities, for rent during the relevant months of 1992. Petitioner has failed to prove that Murray paid her any rent in the form of cash. However, petitioner testified that she and Murray agreed that in addition to paying cash rent, Murray would pay rent by making certain repairs and by maintaining the property during his occupancy. It is well settled rent paid in the form of services rather than cash does not prevent the arrangement from constituting a rental of the property. McBride v. Commissioner, 50 T.C. 1, 8 (1968); see also sec. 1.61-2(d)(1), Income Tax Regs. Thus, we consider whether the value of Murray's services was equal to a fair rental for the property. The exclusive broker agreement that petitioner signed with Cornish & Carey describes the property as "well maintained" with a yard that is "manicured". Furthermore, Charlene Chanteloup, the listing sales agent for Cornish & Carey, testified that "the garden was lovely", "well maintained", and in "very, very nice condition", and that the property, including the interior of the house, was in very good condition. On the evidence presented, we are satisfied that the repair and maintenance work was actually performed. At trial, petitioners presented expert witness testimony as to the fair market rental value of the property. Expert witnessPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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