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supermarket. Petitioner and Pugh collected rent for 310 Oak
Street, but the supermarket had its own repair people who
provided maintenance for the building.
Petitioner and the Pughs contributed equally to the purchase
price of 310 Oak Street. In addition, petitioner and the Pughs
orally agreed to share the profits and losses from 310 Oak Street
equally.
In November 1992, petitioner and the Pughs sold 310 Oak
Street for $875,000 under an installment contract. The proceeds
received in 1992 from the sale of 310 Oak Street were split
equally between petitioner and the Pughs.
In order to keep their ownership interests equal, petitioner
and the Pughs split proceeds from the Oak Street properties
equally and attempted to share expenses as equally as possible.
This was accomplished through an informal system where petitioner
and the Pughs mentally recorded who paid for which expenses.
This system generally kept the shared expenses equal.
All funds relating to the Oak Street properties were kept in
separate property management bank accounts (the accounts). All
income from the Oak Street properties was deposited in the
accounts, and all expenses were paid from the accounts.
3(...continued)
Street are referred to jointly as the Oak Street properties.
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