- 4 -
Petitioners owned a home and a farm in Marlton, New Jersey,
which were situated on 44 acres. Petitioners lived at the farm.
Petitioners also owned a second home in Tucson, Arizona, which
they purchased in 1985. Petitioners owned the New Jersey farm
and residence and the Arizona residence with no outstanding
mortgages on either property. Petitioners purchased another
residential property in Atco, New Jersey, which they bought in
1989 to use as a rental property. They purchased the Atco
property for $80,000 and had a $60,000 mortgage on the property.
Petitioners reported adjusted gross income on their tax
returns for 1987, 1988, and 1989 in the respective amounts of
$56,692, $247,041, and $133,235. Petitioners' adjusted gross
income for 1989, without regard to losses claimed for treasure
hunting and gold mining, would have been $334,764.
Mr. Harrison first developed an interest in gold mining
through a company called Christine Enterprises in 1985.
Christine Enterprises conducted its mining operation in the
Sonora section of Mexico. Christine Enterprises conducted this
gold mining activity with an individual named Thomas Daley. Mr.
Daley was an engineer who had studied mining and geology at
Tucson University. Mr. Harrison sought Mr. Daley's assistance in
an attempt to find gold nuggets by placed mining.4 Mr. Harrison
did not find any gold with Christine Enterprises. In addition to
4 Placed mining is a form of panning for gold flakes and
nuggets in streams and rivers after the winter thaw.
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