Walter Van Eck and Friedgard Van Eck - Page 11

                                       - 11 -                                         
          brief, respondent states:  "These rents were generated from                 
          properties belonging to either William or Gertrude Van Eck                  
          [William's parents], Renate Hodges [Friedgard's mother] or Keith            
          Martin [Walter's friend]."  Apparently, ownership of some or all            
          of such properties changed hands from Walter after 1982.  We                
          accept as true respondent's statement as to post-1982 ownership             
          by others than Walter, and we find accordingly.  Walter argues              
          that the income from such properties should be taxed to those               
          others, the post-1982 owners of the properties.  Respondent                 
          argues as follows:                                                          
                    Respondent admits that the rents from these                       
               properties initially constituted gross income to                       
               petitioners' parents, rather than petitioners.  It                     
               bears restating, however, that Walter Van Eck never                    
               transferred a dollar of the net rents to petitioners'                  
               parents or Keith Martin during any of the tax years at                 
               issue.  * * *  Portions of the rents collected, after                  
               being commingled with funds from other sources, were                   
               spent upon mortgage and other expenses associated with                 
               the properties.  * * *  The balance of the rents were                  
               spent by petitioners for their own personal purposes,                  
               together with the other funds they deposited as                        
               "loans," "gifts," or funds belonging to other family                   
               members.  * * *                                                        
               Respondent has failed to explain how income that was income            
          to others became income to Walter or Walter and Friedgard.                  
          Apparently, respondent is frustrated with the difficulties that             
          her agents and attorneys encountered during the examination and             
          trial preparation phases of this case:                                      
                    Respondent submits that the record morass created                 
               by Walter Van Eck is so deliberately confounded, and                   
               his credibility is so negligible, that we must reduce                  

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011