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liability of the nontransferring former spouse.5 See id. at
1244. In Ingham and the instant case, the sale of the property
did not relieve the nontransferring former spouse of any
obligation or liability that the nontransferring former spouse
owed to the transferring former spouse or the third party. The
Court of Appeals stated: “The sale merely allowed * * * [Ms.
Ingham] to satisfy the debt that she owed to her former husband
under their property settlement.” Id. at 1244. Similarly,
petitioner’s sale of the Tryon Road property satisfied the debt
that he owed to Ms. Olsen, rather than satisfy an obligation owed
by Ms. Olsen to North Fork Timber Company, the third party, or
petitioner as required under Ingham, supra at 1244, and Read v.
Commissioner, supra at 35-36.
After reviewing the record, we find that petitioner has
failed to show that the transfer of the Tryon Road property to
North Fork Timber Company was “on behalf of” Ms. Olsen.
Therefore, we conclude that the gain from the transfer of the
Tryon Road property to North Fork Timber Company does not fall
under section 1041(a) and is taxable to petitioner.
Section 6651(a)
Respondent determined an addition to tax as a result of
petitioner’s failure to timely file his tax return for 1994.
5 We note that this standard was also applied in Read v.
Commissioner, 114 T.C. 14, 35-36 (2000).
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