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WLC did not acquire any of the benefits and burdens of
ownership of the Lawrence Drive property during the 3-month
period it held title to that property. WLC acquired no equity
interest in the Lawrence Drive property. WLC made no economic
outlay to acquire the property. WLC was not at risk to any
extent with respect to the Lawrence Drive property because the
obligation and security interest it gave back on its purported
acquisition of the property were nonrecourse. WLC merely
obligated itself to reconvey to petitioner prior to yearend the
Lawrence Drive property with a substantially completed building
on it that had been built to his specifications and that pursuant
to prearrangement he was obligated to take and pay for.
The parties treated WLC’s holding of title to the Lawrence
Drive property as having no economic significance. The
transaction was not even used as a financing device. No interest
accrued or was paid on the nonrecourse note and mortgage, which
assured that petitioner would get back the Lawrence Drive
property after it had been improved. WLC had no exposure to real
estate taxes that accrued with respect to the property while WLC
held the title; all such taxes were to be paid by petitioner. No
account was to be taken under the terms of the reacquisition
agreement of any value that had been added to the property by
reason of the building constructed in the interim. The
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