- 5 - Apart from withholdings from Mrs. Godwin’s teacher’s salary, petitioners did not pay estimated taxes on any of their 1997 income. Instead, during 1997, petitioners spent “a lot” of the $1 million fee to build their residence in Atmore, Alabama (the Atmore residence), which had a cost basis of $989,158. Petitioners also spent a portion of the $1 million fee to purchase 1,068 acres of timberland in Geneva County, Alabama (the timberland). Petitioner visited the timberland several times in 1998, primarily for recreational purposes but also to aid his efforts to resell a portion of the property. Petitioners also made charitable contributions that substantially exceeded their contributions in prior and subsequent years. Petitioners resided and owned real property in counties of Alabama affected by various natural disasters in 1997 and 1998. On May 3 and October 24, 1997, earthquake tremors occurred in Escambia County, Alabama (hereinafter the May earthquake and the October earthquake and collectively the 1997 earthquakes), where petitioners were building the house that constitutes their principal residence. On July 25, 1997, President Clinton designated three Alabama counties, including Baldwin County where petitioners own a vacation house on the Gulf of Mexico (the bay house), as disaster areas as a result of Hurricane Danny, which occurred in July 1997. On September 30, 1998, President Clinton designated 14 Alabama counties, including Baldwin and EscambiaPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011