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Petitioners received a $60.48 distribution related to the
accounting software a few months after making the investment.
They were told the payment was based on sales of 32 units.
3. Petitioners’ Other Investments
Petitioners bought silver bullion from a company called
Monex through Marinelli and Dollar at Century soon after buying
an interest in the accounting program. Petitioners also invested
in a Denver company started by a friend of petitioner called
Pyrodisc, which produced a newly invented product similar to a
Frisbee. Petitioners did not own stock except in SDSI and
Pyrodisc. Petitioners did not earn a profit from their silver or
Pyrodisc investments, and they lost the money they had invested
in them.
4. Petitioners' Tax Returns
Before 1983, Stanton's Accounting and Tax Service prepared
petitioners' and SDSI's tax returns. Dollar prepared
petitioners' 1983 tax return. He was not a C.P.A. Petitioner
reviewed the 1983 return before it was filed. Petitioners did
not have a financial or tax adviser or attorney on retainer in
1983. Petitioners have prepared their own tax returns since 1984
or 1985.
Petitioners reported a $1,131 loss and claimed a $9,375
investment tax credit (of which they used $1,774) on their 1983
tax return. Petitioners carried back unused investment tax
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Last modified: May 25, 2011