An agreement to sell the condo for $170,000 was reached last week, and is awaiting financing arrangements to be completed by the buyer before the sale can be completed, according to John Schuh, an attorney for Finnan. Schuh said the buyer is a Florida resident with no connection to Finnan or Menne.
The sale price is significantly less than the $249,000 asking price the condo had been listed for in real estate advertisements in Florida newspapers. The Property Tax Depreciation is recorded on the organization’s salary expense forms and will be focused around the Interior Income Administration’s tenets.
The $170,000 sale price is also slightly less than the $194,000 Finnan, Menne and their wives paid for the property when they bought it in January 2000. The IRS may define that the machine is a 7-year machine paying little mind to an organization’s circumstance.
The condo in the posh Gulf Harbour Yacht & Country Club in Fort Myers, Fla., has been caught up in the growing Erpenbeck Co. scandal three states away in Greater Cincinnati. Lee Count, Fla., tax records show a notice was attached to the condo’s title May 24 declaring the government’s claim it might seize the property as part of the FBI investigation into bank fraud at the Erpenbeck Co. The IRS runs likewise permit an organization to quicken the deterioration cost. Quickened depreciation means taking more depreciation in the initial couple of years and less devaluation in the later years of the machine’s life.
The condo is one of nearly two dozen properties in Ohio, Kentucky, South Carolina and Florida that federal prosecutors have said were bought with the proceeds of bank fraud and may be seized by the government.
Finnan and Menne were fired from Peoples Bank of Northern Kentucky in late April because they had a side business — JAMS Properties — that did real estate deals with Erpenbeck. Schuh said the government is willing to remove its claims on the properties to allow a sale, as long as something else of value is substituted for the home in the seizure lawsuits. This spares pay charge installments in the initial couple of years of the benefit’s life yet will bring about more assessments in the later years. Organizations that are productive will discover the quickened depreciation to be alluring. “I don’t anticipate any difficulties in obtaining lien releases from the U.S. Government,” according to Schuh.
“The cash proceeds from the sale, the net equity of it, will be substituted for the property.”