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Homes, and Uprite Homes paid all utilities, insurance, and
property taxes for the Bowmen Lane property. Petitioner paid no
rent for his use of the property.
On October 9, 1995, petitioner made an offer to purchase a
house in Portland, Oregon (the Portland house), and his offer was
accepted. Petitioner expected to close on the Portland house
before December 10, 1995.
On November 30, 1995, Uprite Homes received an offer on the
Bowmen Lane property from William A. Weber, Jr., and Nicole L.
Weber (the Webers), for $160,500. The offer was accepted
contingent upon the Webers’ ability to secure a loan.
On or about November 30, 1995, petitioner learned the seller
of the Portland house could not close on the sale of the house by
December 10, 1995. On December 6, 1995, Uprite Homes executed a
quitclaim deed to transfer the Bowmen Lane property to petitioner
for the stated consideration of $130,000. In its general ledger,
Uprite Homes recorded the transfer by reducing the corporation’s
recorded debt to petitioner from $113,004 to zero and by
recording a debt from petitioner to Uprite Homes of $16,996. The
December 6, 1995, deed from Uprite Homes to petitioner was not
filed in the records of Washington County, Oregon.
The Uprite Homes 1995 general ledger reflects, through an
increase in petitioner’s recorded debt to the corporation, that
in December 1995, petitioner assumed liability for $678 for
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Last modified: May 25, 2011