- 10 -
check stub, on September 30, 1983, PKF recorded the $100,000
check petitioner issued to Robert in an account labeled "Note
Receivable--B. Miller" in petitioner's general ledger.
Having assisted Stephen in connection with his acquisition
of real property and wishing equivalent treatment for her son
Robert, petitioner encouraged Robert to acquire his first house
and offered him $100,000 to assist in that acquisition. In addi-
tion to the $100,000 that Robert had received from petitioner, as
of October 4, 1982, he had approximately $100,000 that was in-
vested in various checking, savings, and security accounts.
On January 21, 1983, Robert acquired a house for $185,000 by
paying almost $170,000 in cash and assuming the seller's existing
mortgage of about $16,000. As of the date of the purchase of the
house, Robert's gross assets consisted of his newly acquired
house and approximately $30,000 that was invested in checking,
savings, and securities accounts.
In connection with the issuance by petitioner of the
$100,000 check to Robert, he signed a non-interest-bearing note
dated October 4, 1982 (October 1982 note) in the principal amount
of $100,000 that was payable to petitioner. Although petitioner
was generally familiar with the concept of secured obligations,
she did not request Robert to secure that note, and it was not
secured, by real property or any other collateral.
The October 1982 note provided that Robert was to pay peti-
tioner $100,000 on demand or on October 4, 1985, if no demand was
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