- 6 -
Cochran determined that petitioners’ net realizable equity
in their cash was the $13,110 reported in their bank accounts8
and that petitioners’ net realizable equity in their retirement
accounts and real estate was the same as the reported values.
Cochran reduced the reported value of the vehicles and mobile
home by 20 percent to reflect their quick sale value. She also
noted the encumbrance on the 2001 VW Passat and allowed a $7,200
exemption9 under section 6334(a)(2) for the motor home.10 Cochran
summarized petitioners’ assets and liabilities as follows:
Fair Quick Net
market sale Encumbrance/ realizable
Assets value value exemption equity
Cash/bank $13,110 -- -- $13,110
Retirement accounts 105,440 -- -- 105,440
Real estate 36,000 -- -- 36,000
Mobile home 8,950 $7,160 $7,200 -0-
Vehicles:
1990 VW Jetta 480 384 -- 384
2001 VW Passat 10,330 8,264 7,948 [1]296
174,310 15,808 15,148 155,230
1 There is a $20 discrepancy that is immaterial to our analysis.
As to the reported expenses, Cochran accepted petitioners’
figures for their housing, taxes, life insurance, and other
expenses. Cochran made some adjustments to petitioners’ claimed
8 Petitioners had actually reported that they had $13,418 in
their bank accounts. However, $308 of this amount was listed on
a separate document that supplemented the Form 433-A; it appears
that Cochran overlooked this item.
9 Whereas sec. 6334(a)(2) limits this exemption to $6,250,
Cochran does not explain in the notice of determination why she
allowed petitioners the greater amount.
10 Cochran did not take into account $3000 of furniture and
personal effects that petitioners had listed on their Form 433-A.
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Last modified: May 25, 2011