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real estate activities, which activities generated that income,
or how he invested that income.
c. Family Lifestyle
Petitioner enjoyed an affluent lifestyle during the years in
issue, but that lifestyle was consistent with that of preceding
years. The record reflects that the family lived in the same
five-bedroom home located in an upscale neighborhood of Holmdel,
New Jersey, prior to and during the years in issue. The record
also indicates that items of jewelry, luxury automobiles,
household help, family vacations, and a summer home had all been
a part of the family's lifestyle since at least the mid-1970's.
Respondent points out that Mr. Acquaviva gave his wife
several items of expensive jewelry in 1985, focusing on the value
of the gifts in relation to the family's adjusted gross income.
We are mindful that "one person's luxury can be another's
necessity, and the lavishness of an expense must be measured from
each family's relative level of ordinary support." Sanders v.
United States, 509 F.2d 162, 168 (5th Cir. 1975). We note that
these items were given to petitioner in conjunction with the
couple's 25th wedding anniversary and, though expensive, were not
disproportionate to the Acquavivas' standard of living.
d. Evasiveness
Mr. Acquaviva, while not evasive, did not share information
about his financial decisions or his business activities with
petitioner. Mr. Acquaviva considered all matters related to his
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