Herbert L. Whitehead and Jennifer L. Whitehead - Page 19




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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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