J. Ramsay Farah and Elizabeth Farah - Page 25

          receipt of the notice of deficiency that they began to hold                 
          themselves out as the owners of the property.  Therefore, we hold           
          that petitioners have failed to meet their burden of proving that           
          the Family Partnership was not fully implemented and should be              
               Petitioners argue alternatively that the Family Partnership            
          distributed the property to them in 1992.  In support of their              
          position, petitioners introduced into evidence a document                   
          purporting to assign the property to petitioners as tenants by              
          the entirety.  The document is not a deed.  The purported                   
          transfer was not recorded, and thus record title to the South               
          Point Road lot remained with the Family Partnership until its               
          sale in 2001.  The property was never titled in petitioners’                
          names.  Therefore, property tax bills always listed the owner of            
          the property as the Family Partnership.  Similarly, the listing             
          agreement and the form HUD-1 settlement sheet listed the owner as           
          the Family Partnership, not petitioners.                                    
               Petitioners argue that the property was transferred to                 
          themselves to facilitate a refinancing of the South Point Road              
          lot and the Berlin house because the lender required the property           
          be held by petitioners individually.  However, the record                   
          indicates that after petitioners used the proceeds of the                   
          refinancing to pay off the respective purchase loans, there was             
          no longer a mortgage on the South Point Road lot; the only                  

Page:  Previous  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  Next 

Last modified: March 27, 2008