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1040X, reporting the $38,334.50 as the gross sales price received
on disposition of the interest in South Texas Drilling.
OPINION
Issue 1. Whether Income Petitioner Reported as a Sale of a
Partnership Interest Was Really Ordinary Income in the Form of a
$15,000 Finder's Fee Paid to Petitioner for Using His Influence
to Assist Jack Ham in Procuring a Construction Loan.
Respondent determined that petitioners received income in
1978 of $38,334.50, consisting of a $15,000 finder's fee for
assisting Jack Ham in procuring a construction loan and a
$23,334.50 fee for assisting Jack Ham in procuring a liquor
license. Petitioner asserts that he never had any agreement
with, nor did he receive any fees from the Hams during the
taxable year in issue. Petitioner admits that he received
$38,334.50 in 1978, but asserts that such income was from the
sale of his partnership interest in South Texas Drilling.
Petitioner concedes that although the transaction was
inadvertently omitted from his original 1978 joint Federal income
tax return, the sale was properly reported on a timely filed
amended return.
Based on the entire record and for the reasons discussed
herein, we find that Jack Ham paid petitioner a $15,000 finder's
fee for petitioner's assistance in procuring a $2.5 million
construction loan for the Hams.
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