Stanley M. Kurzet and Anne L. Kurzet - Page 20

                                               - 20 -                                                 
                  From the time of purchase in 1985 through May of 1995,                              
            approximate total expenditures petitioners incurred and paid in                           
            connection with the timber farm -- as allocated by petitioners                            
            between petitioner's various activities and including                                     
            petitioners’ allocation for expenses of traveling to the timber                           
            farm in petitioner's Lear jet (as explained more fully below) but                         
            not including mere book items such as depreciation and recapture                          
            thereof --- are summarized below:                                                         

                  Category of Timber Farm Expenses                      Amount                        
                  Purchase Price of Timber Farm                         $  569,000                    
                  Cost of Improvements to Land                          400,000                       
                  Cost of Equipment and Vehicles                  625,000                             
                  Maintenance and Operating Expenses                    1,160,000                     
                  Lear Jet Operating Expenses                           428,000                       
                  Cumulative 1985-May 1995 Expenses                     $3,182,000                    

                  In summary, by May of 1995, the $3,524,000 total estimated                          
            fair market value of the timber located on petitioners' timber                            
            farm, of the land, of the buildings, of improvements to the land                          
            and buildings, and of the equipment and machinery purchased for                           
            use on the timber farm reflected an unrealized profit (before                             
            taxes) of approximately $342,000 over the total $3,182,000 that                           
            petitioner paid over the years to purchase, improve, and maintain                         
            the timber farm.                                                                          
            Tahiti Property                                                                           
                  In 1984, petitioners purchased 5.5 acres (consisting of                             
            three adjacent parcels) of oceanfront property on the main island                         





Page:  Previous  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  Next

Last modified: May 25, 2011