Chad A. and Katherine J. Lincoln - Page 8

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          Petitioners had unfettered and unrestrained control over the                
          money in the Provident Central Credit Union account, which was in           
          their names.  Although the funds were used to finance                       
          improvements at the Big Sur property and to reimburse petitioner            
          husband for the cash downpayment on the Big Sur property,                   
          petitioner husband conceded at trial that payment could have been           
          made out of the account for any purpose.  These circumstances               
          strongly support the conclusion that the Pacific Grove sale was             
          an independent transfer of property for money consideration                 
          rather than part of an exchange.  See Carlton v. United States,             
          385 F.2d 238, 243 (5th Cir. 1967); Hillyer v. Commissioner, T.C.            
          Memo. 1996-214; Nixon v. Commissioner, T.C. Memo. 1987-318.                 
               At most, the circumstances relating to petitioners’                    
          establishment and use of the Provident Central Credit Union                 
          account evidence their belated intent to avail themselves of                
          section 1031 treatment and the Elvins’ awareness of their intent.           
          The circumstances do not, however, suggest any mutuality of                 
          intent between petitioners and the Elvins, much less between                
          petitioners and Marcia D’Esopo, to effect an exchange.  It is               
          well settled that a taxpayer’s unilateral intent to undertake an            
          exchange does not govern the tax consequences where no reciprocal           
          transfer of property actually occurs.  See Bezdjian v.                      
          Commissioner, supra at 218; Garcia v. Commissioner, 80 T.C. 491,            
          498 (1983); Rogers v. Commissioner, supra at 136.                           

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