Alice Berger, et al. - Page 15

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               amount of crypts to be used for temporary entombment.                  
               These spaces are intended for those people who have                    
               purchased in future phases but had the misfortune of                   
               dying prior to the building's completion.                              
               We have recently filled our last temporary entombment                  
               space in Phase I and now must seek a Certificate of                    
               Occupancy so that we may legally make entombments in                   
               Phase II.  However, in obtaining a Certificate of                      
               Occupancy drastic tax ramifications will result for                    
               Howard and Alice in their 1989 tax situation.  All                     
               monies collected for Phase II have been recorded as                    
               deposits so no tax has been paid on these monies.  This                
               is acceptable, legal accounting practice as we had not                 
               yet taken possession of the building.  The moment we so                
               take possession of the building, all the aforementioned                
               monies become income to Howard and Alice and are then                  
               subject to income tax.  Simply stated, Howard and Alice                
               will have one wopping [sic] tax bill for 1989.                         
               As we have no choice but to immediately obtain a C.O.                  
               and take possession of Phase II, there is but one                      
               alternative to circumvent this problem.  Howard and                    
               Alice must immediately deed over the lands to the now                  
               existing Non-Profit Corporation, Woodbine Cemetery                     
               Association of Oceanport.  Once it's done, the tax                     
               situation will no longer exist as the Association will                 
               not be subject to income tax.                                          
               The next step is to have the new corporation issue the                 
               necessary Certificates of Indebtedness.  Howard has                    
               asked that these certificates be issued in both his and                
               Alice's names.  This is impossible as to do so would be                
               a direct violation of a standing court order signed by                 
               Judge Kennedy on April 24, 1989, which reads as                        
               follows:  "The Property and Business known as Woodbine                 
               Cemetery and Mausoleum including real personal and                     
               business assets shall be transferred to the wife, and                  
               the business known as Woodbine Cemetery and Mausoleum                  
               shall be thereafter sold to Julia Berger Kunkowski and                 
               her husband Gregg Kunkowski for the sum of $680,000.                   
               plus interest, all of which shall be paid over a period                
               of twenty-five years at the rate of $72,717. per year                  
               and payable monthly at $6059.75 per month."  The                       
               Certificates must be issued in Alice's name and the                    
               balance of the order executed.                                         
               This week I must obtain a Certificate of Occupancy so                  
               that entombment can be continued here at Woodbine.  For                




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