- 14 - Many factors support respondent's theory. The Thousand Palms Property was a highly specialized property. The property included a single-family home, a construction work area, and a mobile home. Petitioners realized that only a limited group of individuals would be interested in such a property. As previously noted, it was the Norrises who contacted petitioners. The Norrises were willing to purchase the Thousand Palms Property if petitioners would purchase their home; i.e., the Palm Springs House. As a new single-family house, the Palm Spring House was probably easier to sell. Furthermore, the sale/exchange transaction was designed in such a manner to provide petitioners with the additional cash required to purchase the Missouri Property. In fact, petitioners used the cash thus obtained to close their purchase of the Missouri Property. Also, petitioners immediately listed the Palm Springs House for resale in order to complete the transaction and their move to Missouri. Thus, we view petitioners' sale/exchange of one property for another and the immediate resale of the latter, as primarily motivated by personal reasons. Hence, despite the fact that petitioners did not purchase the Palm Springs House for use as their personal residence, we think that petitioners' motive was more personal in nature. See O'Neill v. Commissioner, T.C. Memo. 1985-92; Nicath Realty Co., Inc. v. Commissioner, T.C. Memo. 1966-246. Here, although wePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011