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On June 24, 1983, $184,630 was withdrawn from the Alpha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.
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