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improved Lawrence Drive property showed that real estate transfer
tax of $1,140 had been paid, based on a value of $380,000.3
Although petitioner had a general desire to complete his
acquisition of the improved Lawrence Drive property as soon as
possible, he didn’t particularly care whether the closing
occurred before or after December 31, 1993. WLC wished to have
the closing occur before December 31, 1993, because it wanted the
Lawrence Drive property removed from its books for insurance
valuation purposes before the end of the year.
On their 1993 return, petitioners treated the subject
transactions between petitioner and WLC as a sale of the
unimproved Lawrence Drive property and a like-kind exchange of
the McDonald Street property for the improved Lawrence Drive
property. Petitioners reported no gain or loss on the
disposition of the McDonald Street property. They reported a
$5,373 short-term capital gain ($142,400 gross "sales price" less
$137,027 basis) on their quitclaim transfer of the Lawrence Drive
property to WLC, which is described in Schedule D of their return
as a sale of “investment land”.
3 Although these amounts do not computationally coincide in
all respects with the transfer tax figures shown on the buyer’s
and seller’s closing statements, those statements confirm that
the transfer taxes on the subject transactions were paid by
petitioner.
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