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accounting. On July 23 or 24, when Wilberding's wife went in to
open the restaurant, all the cash registers were gone, the phones
were gone, and the door was padlocked. Petitioner claimed that
other creditors were about to seize the restaurant's assets, and
he had moved first to "protect his father's investment". There
is no documentary evidence or credible testimony to what extent,
if any, petitioner's father had an interest in the business.
Based on all the evidence in the record, we hold that the
amounts paid by petitioner on behalf of Wayanne and its progeny
were investments, not loans.
The Partnership Return
Petitioner prepared the 1986 Form 1065 Federal partnership
income tax return for the restaurant and signed the return as a
general partner. This return was filed for the tax year ended
June 30, 1987. The return is filed in the name of Iron Hill
Restaurant-Lounge Ltd., employee identification number (EIN) 51-
0290454, c/o 404 Arbour Drive, Newark, Delaware 19713
(petitioner's home address). It states the business started
February 1, 1986. It states that there are two partners in the
partnership, and that it is not a limited partnership. The
partnership reported $1,011.39 ordinary income.
However, a Schedule K-l (Partner's Share of Income, Credits,
Deductions, etc.) is attached, which conflicts with and
contradicts the Form 1065. The Schedule K-1 lists the partner's
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