Tracy P. Streber, F.K.A. Tracy C. Parker, et al. - Page 15

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          The Management Agreement                                                    
               Sometime in the later part of 1981, Teresa and Parker                  
          entered into an agreement whereby Teresa appointed Parker "as               
          manager and consultant investor, to manage and control" the                 
          $2 million notes (the management agreement).  Parker initiated              
          the management agreement at the time of his divorce from Betty.             
          He was concerned that Betty would convince the daughters to sell            
          the $2 million notes for inadequate sums.  Parker never exercised           
          any authority under the management agreement.                               
          The Daughters' 1981 Tax Returns                                             
               Teresa made a return of income for 1981 on U.S. Individual             
          Income Tax Return, Form 1040 (Teresa's 1981 return).  Attached to           
          Teresa's 1981 return is Form 6252, Computation of Installment               
          Sale Income (Form 6252).  Form 6252 reported the installment sale           
          of certain real property.  The description of that real property            
          is identical with the description of the Northgate Forest                   
          property, as described in the assignment agreement.  That real              
          property is reported to have been acquired on January 26, 1980,             
          and to have been sold on March 4, 1981.  The stated selling price           
          is reported to be $2 million, to be paid 4 years after March 4,             
          1981, with no interest.                                                     
               Tracy did not file a tax return for 1981.                              
          Suit and Settlement                                                         
               In 1985, when the $2 million notes and certain other notes             
          described in the related agreement were not paid by the makers              

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