Board of Contract Appeals

                 General Services Administration

                      Washington, D.C. 20405





                         _______________



                          March 10, 2004

                         _______________





                         GSBCA 16343-RELO





               In the Matter of JAGDISH C. BHANDARI





     Jagdish C. Bhandari, Raleigh, NC, Claimant.



     Robert Cooke, Chief, Fiscal Services Branch, Food Safety and Inspection Service,

Department of Agriculture, Washington, DC, appearing for Department of Agriculture.



DeGRAFF, Board Judge.



     In late 2003, the United States Department of Agriculture (USDA) transferred

Jagdish C. Bhandari from one permanent duty station to another.  In connection with the

transfer, USDA authorized Mr. Bhandari to incur reimbursable real estate sales transaction

expenses.  When Mr. Bhandari asked USDA to reimburse him for expenses associated with

the sale of his residence at his old duty station, USDA decided the expenses were not

reimbursable because title to his residence was held solely by a married son who was not a

member of Mr. Bhandari's household.  Mr. Bhandari asks us to review USDA's decision.



     According to the statute and regulations that apply to Mr. Bhandari, USDA could

reimburse residence sales transaction expenses he was required to pay if title to the residence

was held by him alone, jointly with a member of his immediate family, or by an immediate

family member alone.  5 U.S.C.   5724a(d)(1), (6) (2000); 41 CFR 302-11.101 (2003).  His

immediate family did not include either married children or children who were not members

of his household.  41 CFR 300-3.1.  In order to determine who held title to the residence, the

regulations required USDA to look at whose name appeared on the deed when Mr. Bhandari

was notified of his transfer, and to consider whether Mr. Bhandari had an equitable title

interest in the property.  41 CFR 302-11.102, -11.104, -11.105.   



     USDA correctly determined it could not reimburse Mr. Bhandari for the expenses

associated with the sale of his residence because when Mr. Bhandari was notified of his

transfer, title to his residence was held by a married son who was not a member of

Mr. Bhandari's household and Mr. Bhandari did not have an equitable title interest in the

property.  In his submissions to us and to the agency, Mr. Bhandari says his son held title to

Mr. Bhandari's residence for tax reasons.  Although Mr. Bhandari and his son might have

arranged their affairs in order to gain a tax advantage, the arrangement is such that USDA

cannot reimburse Mr. Bhandari for the expenses associated with the sale of his residence. 



     The claim is denied.









                                   ___________________________________

                                   MARTHA H. DeGRAFF

                                   Board Judge