- 7 -
trial.3 It is clear from the permanent stipulation that the
manufactured home was given to Ms. Brownell in a division of
property following the termination of their personal
relationship. It is also clear that the intent behind the
agreement to transfer the home was to provide Ms. Brownell and
petitioner’s own children with a residence after they were
required to leave petitioner’s residence. Furthermore, the terms
of the permanent stipulation established a lien on the property
in favor of petitioner for a number of years after the transfer
to Ms. Brownell. Because the lien caused Ms. Brownell to have
only a limited interest in the manufactured home, the existence
of such a lien is inconsistent with an intent by petitioner to
provide Ms. Brownell with compensation for past services.
Finally, petitioner in prior years had issued Ms. Brownell Forms
W-2 for the compensation which he paid to her, and on his 1998
Federal income tax return he reported wage expenses of $33,576.
However, petitioner did not issue a Form W-2 for the manufactured
home, and on his 1998 return he characterized the cost of the
manufactured home as a cost of goods sold rather than as wages.
This is further evidence that petitioner did not intend at that
3Petitioner also provided a written statement from Ms.
Brownell--signed on the day before this case was tried and
apparently prepared by petitioner’s accountant--which in essence
recites the events as petitioner portrayed them at trial. We do
not accept this statement as reliable evidence of petitioner’s
intent at the time the manufactured home was purchased and given
to Ms. Brownell.
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011