- 3 - construct a house on the Big Sur property. The house was completed in August 1994, and petitioners commenced using it as a rental property. In the meantime, on March 16, 1993, petitioners sold the Pacific Grove property to Allen and Marla Elvin (the Elvins) for $228,668. The Elvins entered into an agreement with petitioners whereby, upon the closing of a Chicago Title Company escrow account, the money consideration for the Pacific Grove property would be deposited into an account that petitioners opened at Provident Central Credit Union for this purpose. After the sales proceeds were deposited, petitioners directed Provident Central Credit Union to make payments by cashier’s check to contractors hired to make improvements on the Big Sur property. In addition, petitioners directed Provident Central Credit Union to reimburse petitioner husband for the downpayment on the Big Sur property and for expenses incurred to improve it. Statements from the Provident Central Credit Union account were sent directly to petitioners’ home address. Petitioners had sole authority to withdraw funds and make payments from the account. Petitioners did not report any gain on the sale of the Pacific Grove property on their joint 1993 Federal income tax return, nor did their return include a Form 8824, Like-Kind Exchanges.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011