Martin and Sharon Smith - Page 7




                                        - 7 -                                         
          Home2                         160,648                                       
               Less mortgage loan balance   103,982     56,666                        
          124,038                                                                     
          1 The reported values of the IRAs (individual retirement                    
          accounts) equal 70 percent of their account balances.                       
          Petitioners reported the lesser values to reflect their                     
          liability for income tax on a liquidation of the accounts.                  
          2 The reported value equals the home’s assessed value.                      
          The Form 433-A reported that petitioners had no disposable                  
          income, listing that their monthly income totaled $3,223 and                
          their monthly living expenses totaled $4,042.4  The income was              
          reportedly attributable to Smith’s receipt of Social Security               
          and/or a pension.5  The living expenses were reportedly                     
          attributable to the following items:                                        
               Food, clothing, and miscellaneous:     $801                            
               Housing and utilities:                11,360                           
               Transportation:                         2715                           
               Health care:                            3262                           
               Taxes (income and FICA):                130                            
               Life insurance:                         259                            
               Attorney fees:                          4479                           
          4,006                                                                       
          1 The Form 433-A reports that petitioners’ monthly                          
               payment on their mortgage loan was $899 and that they                  
               were required to make these payments until 2026.                       
          2 The Form 433-A reports that petitioners’ monthly                          
               payment on their car loan was $349.                                    
          3 Petitioners told Driver that they were experiencing                       


               4 The listed expenses reported as totaling $4,042 actually             
          total $4,006.                                                               
               5 Petitioners’ 2003 Federal income tax return reported that            
          they had $34,885 of adjusted gross income and $14,798 of taxable            
          income.                                                                     





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Last modified: November 10, 2007