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such note was issued by Pecaris or Coastal (see supra note 3,
infra note 10), or that the commission was otherwise paid.
Second, petitioner informed and instructed Continental, in
writing, that he had "already collected as down payment $600,000
so give Pecaris credit for the $600,000 and deduct same from Carl
Goudas share of distribution" (sic) from the escrow account.
In accordance with petitioner's instructions to Continental,
the credits were shown by entries in the escrow account.
Continental's escrow statement to Coastal showed a credit from
Pecaris to petitioner in the amount of $700,000. Continental's
escrow statement to Pecaris, in addition to showing the cash
balances due petitioner and Messrs. Boyas and Spillas from the
escrow account, showed a credit to petitioner of $600,000, and
recited that the real estate commission had been paid to HGM by
promissory note in the amount of $100,000.
Soon after the conveyance of the Mall by Pecaris, Coastal
recorded, in its general journal, a contribution to capital by
petitioner in the amount of $700,000. Pursuant to the Coastal
partnership agreement, petitioner intended, and was expected by
Mr. Giorgi, to contribute or cause to be transferred to Coastal
an interest in the Mall in lieu of a cash contribution.
Petitioner made no other contribution to the capital of Coastal
during 1988. Mr. Giorgi initially contributed $70,100 to the
capital of Coastal, and an additional $6,151 later during the
year. During 1988, petitioner and Mr. Giorgi received cash
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