-6-
because buyers could not get financing due to the high interest
rates. The larger builders in Phoenix "bought down" mortgage
interest rates from 18 to 9 percent for their home buyers, but
Hancock Enterprises could not afford to do that.
After Hancock Enterprises stopped building houses,
petitioner and her husband explored other development activities.
In 1985, they considered the possibility of building 5,000 low-
cost houses for the Government of Ecuador. About that time,
Hancock Enterprises sold some lots to repay its loans. In 1985,
Hancock Enterprises owed about $2.5 million to the banks and
$800,000 to petitioner and her husband.
In 1987, the City of Phoenix proposed to build a freeway
near Summer Shadows. This made it harder for petitioner to sell
lots in Summer Shadows. Petitioner later sold those lots when
the City of Phoenix built the freeway about 12 blocks from Summer
Shadows.
The Phoenix real estate market improved from 1991 to 1994.
5. Liquidation of Hancock Enterprises
Petitioner became the trustee of the trust after her husband
died on December 31, 1985. The parties agree that petitioner's
basis in Hancock Enterprises' stock stepped up to the date of
death value under section 1014(b)(6).
Hancock Enterprises made a bulk sale of six Playa del Sur
lots in 1986 for $52,870 per lot.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011