- 4 -
In 1992, petitioner was looking for land to which he could
move his business.
On September 30, 1992, petitioner purchased 8.47 acres of
unimproved real property on Lawrence Drive in De Pere, Wisconsin
(the Lawrence Drive property), a suburb of Green Bay. Petitioner
described the Lawrence Drive property as a “very good spot” that
he “took advantage of”. Petitioner promptly sold 2.09 acres of
the Lawrence Drive property to an unrelated corporation.
Petitioner’s adjusted basis of the Lawrence Drive property that
he purchased and retained, with allocated fees and other closing
costs, was $137,027.
Petitioner partially financed the purchase of the Lawrence
Drive property with a $100,000 loan from Bank One, Green Bay.
Bank One, Green Bay received petitioner’s note and a mortgage on
the Lawrence Drive property as security for its loan.
By 1993, petitioner was ready to move his business to a new
building to be constructed on the Lawrence Drive property.
After petitioner acquired the Lawrence Drive property, The
Western Lime and Cement Co. (WLC) expressed interest in acquiring
petitioner's McDonald Street property.
Petitioner discussed WLC's interest in the McDonald Street
property with his accountant. The accountant suggested that
petitioner could structure a like-kind exchange in which he would
quitclaim the Lawrence Drive property to WLC, after which WLC
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