- 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 NextLast modified: May 25, 2011