- 16 - to 3 Isabella and, as Mr. Assaad claims, to repay a portion of Mr. Trudell’s prior loan or contribution. Petitioners have also substantiated that they paid $26,657.58 with respect to the sale of 9 Isabella.16 Petitioners substantiated the following miscellaneous sales costs for 3 Isabella: (1) A home warranty expense of $275, and (2) prorated taxes of $674.36. Petitioners did not substantiate the remaining amounts that they claim as miscellaneous sales costs for 3 Isabella. Those amounts represent a “credit to buyer” of $1,445 for a fence and a “credit to buyer” of $565 for downspouts as part of the sale of 3 Isabella. Petitioners did not establish that those expenses were actually incurred to the extent claimed. Petitioners, likewise, did not substantiate the $63,000 they claim as expenses for “Fence, chandeliers, etc.” Petitioners rely on a handwritten document that a representative of Pacific prepared as evidence of these expenses. That document fails to properly substantiate the amounts petitioners claim. There is no evidence that petitioners actually incurred those expenses in the amount claimed. 3. Foreclosure Expenses (15 Isabella) Petitioners claim that they incurred $102,385.23 as foreclosure expenses. Petitioners rely on two documents to 16We note that $11,482.95 of this amount represents interest from Mar. 1 to Apr. 7, 1992. Pursuant to our discussion, which follows, this amount would have to be reduced to account for the portion of the loan from California Federal which petitioners have failed to establish as deductible expenses.Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Next
Last modified: May 25, 2011