Opinion ID: 1793399
Heading Depth: 3
Heading Rank: 3

Heading: and D. Tax Penalties and Interest and Cost of Borrowing Money.

Text: ¶ 19. Callicutt also claims damages of $18,992.89 in penalties and interest as a result of the taxes he was unable to defer, as well as damages of $13,943 incurred when he had to borrow money to pay the taxes due on the property sale. Callicutt would have owed the taxes regardless of any alleged injurious conduct of Taylor. However, Callicutt claims that his damages included penalties and interest incurred by the delay in his payment of those taxes and damages for having to borrow money to pay the taxes due on the property. Clearly, the property never qualified for a Section 1031 exchange. The property was disqualified for a like-kind exchange before Callicutt ever had any dealings with Taylor. Furthermore, to the extent that Callicutt may have had to incur costs to borrow money to pay the taxes for the Moore property, Taylor's actions or inactions had no bearing on the liquidity of Callicutt's assets to pay his tax liability for the Moore property. Despite the failure of the Moore property to qualify as a Section 1031, like-kind exchange, the issue of these incidental damages will be discussed more fully under the following fiduciary-duty issue.