5 received, one-half of the net equity from the Arden Road house), to obtain a loan from Park National Bank. The statement said that petitioner owned a 50-percent interest in the Arden Road house, that he acquired it in November 1969, and that it was subject to an $18,000 mortgage. E. Sale of the Arden Road House Mrs. Suhr sold the Arden Road house for $155,000 on July 27, 1994. Mrs. Suhr signed the Seller’s Affidavit and Survivorship Deed, and Mrs. Suhr and petitioner each signed an Addendum to Sales Contract, Agency Disclosure Statement, and Addendum to Inspection Clause. State Savings Bank released petitioner and Mrs. Suhr from the mortgage September 12, 1994, upon payment of the $20,632.55 balance owed on the mortgage. Selling expenses totaled $10,928.50. Pursuant to the divorce decree, petitioner and Mrs. Suhr each received $61,156.84 from the sale of the Arden Road house. On July 27, 1994, Mrs. Suhr used the proceeds from the sale of the Arden Road house to buy a house in Gahanna, Ohio, for $112,900, and she thus was eligible for nonrecognition of gain under former section 1034. Discussion A. Background The issue for decision is whether petitioner must recognize gain in 1994 from the sale of the Arden Road house. Generally, aPage: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011