- 6 -
During 1996 a Preliminary Geological Investigation was
conducted on the Jackson Creek property to evaluate subsurface
conditions for the development of the property. Prior to the
sales of the Jackson Creek property by JCLC, amended and final
development plans were approved by the town of Monument, which
enabled the commencement of construction. Approximately 1 year
later, a representative from Elite Properties of America Corp.
(Elite), inquired whether JCLC was willing to sell a portion of
the Jackson Creek property. After negotiations, JCLC entered
into a Purchase and Sale agreement with Elite on August 28, 1997.
The agreement was amended on March 19, 1998, to permit conveyance
to Elite of 102.215 acres of the Jackson Creek property. The
amended agreement was to occur by means of three separate closing
transactions.
The first closing occurred on June 15, 1998, when a portion
of the Jackson Creek property was conveyed for $792,880. JCLC’s
1998 partnership return reflected a long-term capital gain of
$607,344 with respect to this transaction. Petitioner reported
his distributive share of the gain on his 1998 Federal income tax
return. The second and third closings occurred during 1999 and
2000, respectively. The March 19, 1998, amended agreement also
included terms requiring JCLC to cause Triview to install and
maintain irrigation and landscaping within the parcel, and for
JCLC, at its sole expense, to be responsible for any grading,
Page: 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