- 22 -
Mr. Jackson's advice, petitioners also began reporting the
losses from their farming activities on RC's partnership
tax returns.
Petitioners maintained a checking account with the
Chemical Bank-South (Chemical) for their tennis villa,
resort villa, and farming activities. This bank account
was separate from petitioners' personal bank accounts.
Petitioners typically paid expenses incurred in their
farming activity with checks drawn on the Chemical account,
but it is not clear from the record when this practice
began. These checks were imprinted with the name "R/C
ENTERPRISES" and the address of petitioners' personal
residence. Petitioners also periodically paid expenses
related to their farming activity with checks drawn on
their personal checking account.
Mrs. Holmes was primarily responsible for keeping
the books and writing checks to pay expenses relating
to petitioners' business and farming activities. When
petitioners received a bill, petitioner would typically
inspect the bill and write "labor", "machinery", or some
other designation on the portion to be retained for
petitioners' records. He would then give the bill to
Mrs. Holmes to pay and record. Mrs. Holmes would then
allocate the expense to one of petitioners' business
Page: Previous 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NextLast modified: May 25, 2011