- 3 -
Liquors”. Petitioners acquired 75 percent and the sister-in-law
the remaining 25 percent of Volm’s shares of stock.
After the purchases of the realty and corporate stock,
Volm’s continued to use the ground floor of the Branch building
to operate a liquor store. Petitioners, in addition to being the
majority owners of the liquor business, devoted the majority of
their time to the operation of the Branch building liquor store
business. Petitioners and the sister-in-law used part of the
second floor of the Branch building as their personal residence.
The first floor of the Branch building, which is 2,640 square
feet, is slightly larger than the second floor, which is 2,160
square feet. Volm’s also used a 286-square-foot office on the
second floor of the building. Overall, 61 percent of the Branch
building is used by Volm’s to operate the liquor store, and 39
percent is used by petitioners and relatives as their personal
residence.
During 1993, the liquor store business did not make rental
payments directly to petitioners for the business' use of the
Branch property. Although there was no written lease, the liquor
store business paid certain expenses incurred in connection with
the Branch property in exchange for its use of the building.
Volm’s paid the real estate taxes on the Branch property of
$4,384.45 during 1993. Volm’s also paid all of the utilities,
including the electric, gas, and sanitation costs, incurred for
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011