- -7 partnership was self-employment income, although petitioners did not pay any self-employment tax for that year. Some of the payments paid to petitioner in the years 1987 through 1989 were paid by checks issued on the law partnership's North Dakota and Minnesota trust accounts. Payments reflected in the North Dakota and Minnesota trust account ledgers indicate that they relate to specific casework, and many list the purpose of the check to petitioner as a payment for fees. Some checks issued to petitioner in 1987 and 1989 bear a notation stating "fees" or indicate that they were payable in connection with a specific individual. All of the 10-percent payments to petitioner from the law partnership were designated as fees on the partnership books. The property located at 219 South Third Street, Grand Forks, North Dakota, was purchased by petitioner, Mr. Moosbrugger, and Mr. Murray on October 7, 1971, for $56,000. The legal description of the property conveyed was the westerly or front 140 feet of lot 14 in block 32, in Grand Forks, North Dakota. The purchasers and each of their spouses executed a mortgage in favor of the First National Bank of Grand Forks (First National Bank) on April 13, 1972, on the Third Street Property, to secure a promissory note in the principal amount of $56,000. This mortgage was satisfied on January 9, 1973. The property was purchased to be used as offices for the law partnership, and it was used for this purpose (or by the law practice when thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011