Nathanael Roman - Page 12

                                       - 12 -                                         
                         Mr. Ridgway                                                  
               On October 6, 1988, petitioner gave James B. Ridgway (Mr.              
          Ridgway) a check for $300 (Mr. Ridgway's check) that included the           
          following handwritten notation on the check stub for that check:            
          "Auto Purchase Loan".  Mr. Ridgway did not repay the amount of              
          Mr. Ridgway's check.                                                        
               Claimed Worthless Stock                                                
               On April 17, 1987, petitioner paid $1,000 in return for                
          1,000 shares of $1 par value common stock of Celebration Products           
          (Celebration), and he received a stock certificate representing             
          those shares.  On May 14, 1988, petitioner paid $2,000 to pur-              
          chase an additional 2,000 shares of $1 par value Celebration                
          common stock.  However, petitioner received a stock certificate             
          representing only 1,000 of those 2,000 shares.                              
               At all relevant times, Mr. Parra was a principal officer of            
          Celebration.  During 1989, petitioner determined that Mr. Parra             
          was unable to make Celebration into a successful business.                  
               Return Treatment of Claimed Stock Sale Losses,                         
               Nonbusiness Bad Debts, and Worthless Stock                             
               In Schedule D (Capital Gains and Losses) of petitioner's               
          1989 return (1989 Schedule D), petitioner claimed the following             
          as short-term capital losses:                                               
                 Promissory Note -- Robert L. Parra        $7,500                     
                 Promissory Note -- Robert L. Parra        7,500                      
                 Promissory Note -- Robert L. McWilliams   6,000                      
                 Celebration Products Stock                 2,500                     
                 Total                                     23,500                     





Page:  Previous  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  Next

Last modified: May 25, 2011