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Petitioner recorded his transactions with each partnership
on a ledger (the ledger). Respondent introduced into evidence a
computer spreadsheet outlining those transactions, which utilized
the ledger. Petitioner also recorded certain financial
information concerning petitioner and the partnerships on several
documents entitled "GAP loan interest payments" (GAP sheets).
The GAP sheets purport to record short-term loans from petitioner
to the partnerships. The amounts and dates of payment reflected
on the GAP sheets are virtually identical to the entries listed
on the ledgers. The only difference is the manner in which
certain of the payments are recorded. On the GAP sheets, these
payments are recorded as loans from petitioner to the
partnerships. On the ledgers, they are recorded as miscellaneous
draws from the partnerships. The ledgers do not reflect loans
from petitioner to the partnerships in the amounts and on the
dates indicated on the GAP sheets. Apart from the GAP sheets,
there is no evidence in the record that petitioner lent money or
otherwise transferred funds to the partnerships during the years
at issue. Some of the ledgers reflect negative balances at the
close of the year.
The limited partnerships' offering circulars specifically
state: "No loans of any type or description shall be made or
given to the General Partner, its constituent partners or its
affiliates". The offering circulars did permit petitioner, as
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