- 38 -
5. East Lake Vista (OS-47)
FINDINGS OF FACT
On May 1, 1984, Mr. Miles, as trustee, purchased real
property consisting of approximately 156.65 acres in Osceola
County, Florida, which we refer to as “East Lake Vista” (OS-47),
from Reba Smith, for $500,000. Part of the purchase price,
$125,000, was paid in cash, and Mr. Miles issued a purchase money
mortgage of $375,000 for the remainder.26
In May 1986, Mr. Miles sold approximately 31 acres of East
Lake Vista to Nicholas Pope, for $205,000. On December 16, 1986,
Mr. Miles sold an additional 31.50 acres of East Lake Vista to
Mr. Pope for $215,181. Petitioner did not report any income from
those transactions on a Form 1040 for any tax year.
On December 16, 1986, at the same time as the second sale,
petitioner and Dr. George Gant entered into a “Continuing and
Unconditional Guaranty of Performance and Payment” in favor of
Mr. Pope. That document shows petitioner and Dr. Gant as
“Guarantors”, Mr. Miles, trustee, as “Seller”, and Mr. Pope as
“Buyer”:
WHEREAS, R. Stephen Miles, Jr., Trustee, as
Seller, and Nicholas A. Pope, as Trustee under that
certain unrecorded Trust Agreement dated December 16,
26The mortgage provides for interest of 10 percent, per
annum, and requires “Three equal annual payments of $150,793.05
including principal and interest commencing one year from the
date hereof and continuing each year thereafter until the entire
balance plus interest is paid in full.” A satisfaction of
mortgage was issued by Reba Smith and was filed on Dec. 18, 1986.
Page: Previous 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 NextLast modified: May 25, 2011