Steven J. Romer - Page 19

                                       - 19 -                                         
               fide intent on the borrower's part to repay the acquired               
               The evidence does not establish that petitioner's receipt of           
          $350,000 through his check-kiting scheme was based on consensual            
          agreements between petitioner and the banks to the effect that              
          petitioner could overdraw his accounts and later repay the banks,           
          as petitioner contends.                                                     
               Similarly, the evidence does not establish that petitioner's           
          receipt of $575,000 by forging Goldman's signature was based on a           
          consensual agreement between petitioner and Goldman to the effect           
          that petitioner could forge Goldman's signature and treat the               
          funds so obtained as a personal loan.                                       
               The sparse evidence in the record, however, with regard to             
          petitioner's receipt of $450,000 from William Marion indicates              
          (and respondent's brief so acknowledges) that these funds were              
          obtained by New Gold and Ryer as a loan from William Marion.  The           
          facts that petitioner personally guaranteed the loan and the loan           
          has not been repaid do not convert this $450,000 into taxable               
          income to petitioner.  The $450,000 that was borrowed from                  
          William Marion is not to be treated as taxable income to                    
          petitioner in the years before us.                                          
               In summary, each of respondent's adjustments to petitioner's           
          1988, 1989, and 1990 taxable income is sustained with the                   
          exception of the $450,000 loan proceeds from William Marion.                

Page:  Previous  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  Next

Last modified: May 25, 2011