David Rendel and Rachel Rendel - Page 6

                                                                                - 6 -- 6 -                                                                                 
                              On June 24, 1983, $184,630 was withdrawn from the Alpha                                                                                      
                    account2 by the purchase of a cashier's check and was used by                                                                                          
                    petitioners as part payment on the purchase of a new personal                                                                                          
                    residence for petitioners in Alameda, California (referred to                                                                                          
                    hereinafter as the Oyster Pond Property).  An installment note                                                                                         
                    from petitioners to Alpha with respect to this $184,630 was                                                                                            
                    drafted but was never signed by petitioners, and petitioners made                                                                                      
                    no repayments to Alpha of this $184,630.  Alpha did receive a                                                                                          
                    deed of trust on the Oyster Pond Property as stated security                                                                                           
                    relating to this $184,630.  Petitioners have implicitly conceded                                                                                       
                    that petitioners' withdrawal of this $184,630 did not constitute                                                                                       
                    a valid loan from Alpha.                                                                                                                               
                              In August and September of 1983, petitioners purchased                                                                                       
                    appliances and other items for the Oyster Pond Property using                                                                                          
                    $3,148 in CCMI's funds.  The schedule below describes these                                                                                            
                    purchases:                                                                                                                                             

                                               Date                   Item                                    Cost                                                         
                                               8/11/83                Home appliances                         $2,051                                                       
                                              8/31/83                Wallpaper                               800                                                          
                                               9/8/83                 Other expenses                          297                                                          
                                                                                                              $3,148                                                       

                              On November 8, 1982, this Court decided Zmuda v.                                                                                             
                    Commissioner, 79 T.C. 714 (1982), affd. 731 F.2d 1417 (9th Cir.                                                                                        

                    2         This amount includes accrued interest and appears to have                                                                                    
                    been the entire balance of the Alpha account at the time of                                                                                            
                    withdrawal.                                                                                                                                            




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  Next

Last modified: May 25, 2011