Albert J. and Helen R. Desantis - Page 15

                                       - 15 -                                         

               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              





Page:  Previous  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  Next

Last modified: May 25, 2011