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knowledgeable on the subject of like-kind exchanges. See sec.
1031; Kalo v. Commissioner, T.C. Memo. 1996-482 (A taxpayer’s
intelligence, education, and tax expertise are also relevant for
purposes of determining fraudulent intent).
At trial, petitioner testified:
Q Now, in relation to mortgage payments--the receipt
of mortgage payments--if those payments went to Mr.
Miles as trustee, you related how they might not--
might or might not have appeared on your tax return.
A Yes, sir.
Q Would you explain to the Court why they might or
might not appear on your tax return if a payment went
to Miles?
A Well, I mean, we were discussing before that as
long as I was leaving in there to either pay--I mean,
some of it went for legal fees or taxes--real estate
taxes, mortgage payments, interest payments, to
purchase another piece of property that--and
occasionally I would go, you know, need money and say,
Write me a check. I would put it in my account, go on
the spreadsheet; it would go on the return.
Q Now, as far as payments that were received from
the sale of a property, if that went to Miles, how
would you consider it? How did you consider it?
A I’m sorry. I thought that was the question you
had just previously asked me.
Q No, I asked you specifically about receipt from
mortgage payments--if there was a mortgage payment that
Miles received.
A Okay. All right, well, I gave you the correct
answer.
Q Now, if it was not a mortgage payment, but
actually a payment at a closing from the sale of
property--
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