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with respect to the Sumner property:
Year Mortgage Interest Property Taxes
1996 $28,070.66 $5,302.88
1997 27,651.00 5,584.00
Prior to February 1994, Essie Whitehead, who is Mr. White-
head’s mother, owned and resided on real property located at
12619 Juanita Drive Northeast, Kirkland, Washington (Kirkland
property). In February 1994, Essie Whitehead, who continued to
reside at the Kirkland property, and Mr. Whitehead refinanced the
mortgage loan on the Kirkland property and secured that refinanc-
ing by that property.10
During the years at issue, Colonial Mortgage Co. (Colonial
Mortgage) held the mortgage loan on the Kirkland property.
During those years, Essie Whitehead and Mr. Whitehead were
jointly liable on that mortgage loan. Sometime during the first
week of each month throughout the years at issue, Essie Whitehead
made the monthly mortgage loan payment on the Kirkland property,
which included payment of mortgage interest and property taxes,
from checks that she drew on her own checking account.
10The parties stipulated that in February 1994 Essie White-
head and both Mr. Whitehead and Ms. Whitehead refinanced the
mortgage loan on the Kirkland property. That stipulation is
clearly contrary to the facts that we have found are established
by the record, and we shall disregard it. See Cal-Maine Foods,
Inc. v. Commissioner, 93 T.C. at 195. The record establishes,
and we have found, that in February 1994 Essie Whitehead and Mr.
Whitehead, and not Ms. Whitehead, refinanced the mortgage loan on
the Kirkland property.
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