Daniel M. Gray - Page 9

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               The check register shows only one entry that relates                   
          directly to a payment on the condo.  The entry reads: “Dep. to              
          7942 acct 5/27/00 4,000.00 from Dan Gray, Less $2,000.00 for                
          Condo, approx Bal. 3591.00.”  A comparison of the check register            
          to the bank statement shows that Mrs. Tiernan was the payee of              
          check No. 2057, dated May 30, 2000, for $2,000 (check No. 2057).            
          Petitioner urges the Court to infer from the entry that                     
          petitioner has been making payments on the principal and the                
          interest under the “note”.                                                  
               It is unclear which portion of check No. 2057, if any, would           
          constitute interest because interest was unstated under the                 
          “note”.  At trial, petitioner failed to explain how he had                  
          determined the interest component for each payment, or how he had           
          calculated that he paid a home mortgage interest expense of                 
          $6,600 for 2000.  Petitioner relies solely on his uncorroborated            
          testimony that the interest due and paid under the “note” for               
          2000 was $6,600.                                                            
               Even if petitioner had paid any interest under the “note”,             
          it is not deductible because the Court is not persuaded that                
          petitioner was the equitable owner of the condo in 2000.  Other             
          than check No. 2057, the check register shows no other payments             
          to Mrs. Tiernan or payments related to the condo.  Petitioner did           






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