Leon and Belle Atkind - Page 15

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            testified that he typically relied on his own judgment for                                  
            investments under $100,000; his investment in Hyannis was in the                            
            amount of $25,000.  When asked who he relied upon in making the                             
            Hyannis investment, petitioner replied, "My own judgment."                                  
                  Petitioner attempts to distinguish himself from the                                   
            taxpayers in Provizer v. Commissioner, T.C. Memo. 1992-177, by                              
            arguing that he was not an educated, sophisticated investor and                             
            attorney seeking to shelter income.  However, while petitioner                              
            did not receive a college degree, he did receive some higher                                
            education and he was anything but unsophisticated in business and                           
            investing.  Petitioner's entrepreneurial spirit, energy, and                                
            business acumen led to the creation and prosperity of various                               
            apparel businesses.  Petitioner's business ventures culminated in                           
            the founding of NBO, a business which became so successful                                  
            petitioner was able to sell half of it for $25,000,000 in 1988.                             
            In addition, from 1980 to the time of trial, petitioner invested                            
            approximately $16,000,000 in upwards of 70 ventures.  In light of                           
            petitioner's remarkable and impressive business success and                                 
            extensive investing activity, the fact that he never received a                             
            college degree does not persuade us that he was an                                          
            unsophisticated businessman or investor.                                                    
                  Similarly, we are not persuaded that petitioner lacked                                
            interest in the tax benefits generated by Hyannis.  According to                            
            the Hyannis offering memorandum, the projected benefits for each                            
            $50,000 investor were investment tax credits in 1981 of $79,200                             
            plus deductions in 1981 of $42,491.  In the first year of the                               

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