Donald G. and Claudia A. Willis - Page 5

                                        - 5 -                                         
          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.               








Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011