- 11 -
possible, through the operation of the commercial
plantation; and
(4) To generate tax losses in 1981 which can be
used to offset the taxable income from other sources.6
In the "Investor Suitability Standards" section of the
offering, potential investors were further advised that, because
of the risks and benefits involved, the offering was restricted
to persons who made a minimum purchase of one limited partnership
unit at a cost of $50,000 per unit, unless the general partner
permitted the purchase of a fraction of a unit, and who had
either a net worth, exclusive of home, furnishings, and
automobiles, of at least $200,000 and taxable income in 1980,
some portion of which was subject to Federal income tax at a rate
of 50 percent or more, or a net worth, exclusive of home,
furnishings, and automobiles, of at least $300,000. Potential
investors were informed that investors in higher Federal income
tax brackets should be able to utilize more fully certain income
tax deductions generated by JDP.
Potential investors were advised that an investor
subscribing to one limited partnership unit would have to pay
$15,000 in cash at the time of subscription and the balance of
$35,000 by the execution and delivery of a promissory note,
bearing interest at the rate of 10 percent per year on the unpaid
6 In the text we have employed the term "small plantation" to
describe the initial operations of the JDP partnership instead of
the pejorative term "experimental plantation" employed in the
promotional literature.
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