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as-to-collectibility situation, the unique circumstances of the
taxpayer to be considered in determining the taxpayer’s
reasonable basic living expenses do not include the maintenance
of an affluent or luxurious standard of living. Sec. 301.7122-
1T(b)(4)(i), Temporary Proced. & Admin. Regs, 64 Fed. Reg. 39024
(July 21, 1999); sec. 301.6343-1(b)(4)(i), Proced. & Admin. Regs.
Substantial equity in a home worth at least $610,000 would weigh
against a finding that petitioner was suffering economic hardship
when he made the second offer.
Moreover, petitioner’s allegations with regard to his home
ownership show that petitioner’s assertions are unreliable.
Petitioner admitted on cross-examination that he made a 50-
percent, $50,000 initial contribution to the downpayment. In
addition, he stated in his first offer he had a 50-percent
interest in his home before his wife’s disability. He then
alleged in his second offer that his home equity had dropped to
25 percent after the disability, even though he alleged that his
wife’s condition necessitated his making all the mortgage
payments. Even though respondent accepts this decreased
ownership for purposes of the second offer, petitioner’s attempts
to show a reduction in equity are superficial at best.
Irrespective of petitioner’s actual equity position, his
inconsistent, self-serving explanations show that his allegations
regarding his economic well-being and alleged hardship are
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