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petitioners to petitioner’s mother. Although the warranty deed
recording this title transfer reflects consideration of $10,000,
petitioner’s mother made no such payment to petitioners. Since
1999, the mobile home located on this real estate has been
petitioners’ primary residence.
Petitioners advised the settlement officer that the real
estate belonged to petitioner’s mother. Petitioners indicated
that petitioner’s mother had provided the funds for the 1996
cashier’s check used to purchase the real estate. Petitioners
submitted to respondent’s settlement officer copies of checks and
a bank statement in support of this contention. The bank
statement reflects a payment by petitioner’s mother of $8,750 on
August 26, 1996. The bank statement, however, also reflects a
deposit of $10,532.33 into the same bank account on that same
date.
From the time of purchase in 1996 through the time of the
collection due process hearing, petitioners paid the property
taxes and mortgage payments relating to the real estate. No
rental agreement between petitioners and petitioner’s mother was
provided, and none appears to exist. On her Federal income tax
returns, petitioner’s mother did not include rental income or
deduct mortgage interest relating to this real estate.
Petitioner’s mother was not called as a witness in this case.
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Last modified: May 25, 2011