- 6 - petitioner and contains the notation "V.B.H. Investment". In the year-to-date general ledger (ledger) for GSCH for the period ended November 30, 1985, an asset account is shown under account number 205 and is titled "Investment-Vosburg Hotels Inc." Moreover, on the Schedule L of GSCH's corporate tax return, there is an entry listed as an "investment" in the amount of $25,000. From these records, one would logically conclude that the $25,000 represents GSCH's investment in Vosburg, rather than petitioners' investment. Petitioners also rely on checks drawn on bank accounts at Bank of America and Wells Fargo Bank, which they referred to as the "Entity Control Master Account". These accounts, however, were corporate bank accounts in the names of "Oliver Q. Foust, Accountancy Corporation DBA, O. Quay Financial Management Corporation" and "Oliver Q. Foust, An Accountancy Corporation", respectively. None of the checks were written on a personal bank account. Based on this record, we conclude that petitioners have not presented sufficient evidence to prove that they personally invested any funds in Vosburg. In fact, the checks and the corporate accounting records on which they rely indicate that the corporations treated the disbursements to Vosburg as assets of the particular corporation. Consequently, petitioners have failed to demonstrate the necessary economic outlay to prove basis. They are not entitled, therefore, to deduct any lossesPage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011