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Respondent would tax Howard under our 50-percent allocation
to him on $145,204 of profit on mausoleum deposits, plus $21,646,
his 50-percent share of other cemetery income and interest
income, for a total of $166,850. This is not much less than the
amount reported by Howard on his 1989 joint return. We believe
that respondent's approach to taxing Howard Berger is supported
by the parties' stipulations as to the amounts of Phase II
mausoleum crypt sales deposits and costs that would be taxed on a
percentage of completion basis, as of March 14, 1989, to a 50-
percent owner. We treat respondent's argument as a concession,
and reduce Howard Berger's 1989 Schedule C Woodbine income from
$175,142 to $166,850.
We therefore treat Alice Berger as having received the
remainder of Woodbine's taxable income for 1989. Inasmuch as the
parties have agreed that the total taxable income of Woodbine for
the period in 1989 through November 17, 1989, amounted to
$383,133, Alice Berger is taxable on the remainder of $216,283.
It's not unfair to tax Alice Berger on that amount of Woodbine
operating income for 1989. Until March 14, 1989, she received
the same monthly draw payments as Howard Berger. Thereafter,
13(...continued)
1989 he should be taxed only on $22,853 of Woodbine income, which
approximates the following amounts of pre-March 14, 1989 income:
Cemetery income $36,030.36
Interest income 7,262.19
2)43,292.55
21,646.28
This is the basis for Howard Berger's argument that he and
Susan Berger have a substantial overpayment for 1989.
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