- 4 -
general ledgers, however, were retained by the partnership and by
petitioner for only a short period of time and were not available
at the trial.
Petitioner maintained what he refers to as monthly summary
records with respect to funds received from rental of videos.
The summary records also were not available at the trial.
There was maintained for each Store a separate bank account
at Valley National Bank. Funds received from rental of videos
were deposited every few days into the bank accounts maintained
for the Stores.
Most of the funds deposited in the bank accounts represented
cash received by the Stores from the rental of videos. Funds
deposited into the bank accounts also represented checks received
by the Stores from the rental of videos and funds received by the
Stores from credit card companies for video rentals which had
been paid by customers with credit cards.
Stores 1, 2, and 3 were sold either in 1987 or in the
beginning of 1989, and there is no issue between the parties as
to the income relating to Stores 1, 2, and 3.
For 1989 and 1990, the partnership timely filed partnership
Federal income tax returns and reported gross receipts and, after
expenses, ordinary losses relating to Stores 4 and 5 as follows:
Page: 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