- 3 -
The Ranch
Petitioner and a friend, William Anderson (Anderson),
planned to acquire Las Colinas Ranch (the Ranch), in Westhoff,
Texas, in order to operate a parimutuel horse-betting business.
Anderson owned a corporation called Shoreline Resources, Inc.,
which acquired the Ranch. When Shoreline Resources acquired it,
the Ranch consisted of 133 acres of land and an old, run-down
frame house. Anderson paid to build the exterior shell of a
ranch house on the land, but did not pay to complete the
interior. Petitioner paid to complete the interior of the ranch
house, paid for some repairs to the frame house, and paid for
other improvements on the property. Shoreline Resources merged
with Paz in December 1988, and Paz was the corporation that
survived the merger, with petitioner as president and 78-percent
shareholder and Anderson as 22-percent shareholder. As a result
of the merger, Paz became the owner of the Ranch, with book
values of $115,007 for the land and $39,000 for the ranch house.
Petitioner moved to the ranch house after he left Tejas Gas
Corporation in 1989 or 1990, and it was petitioner's primary
residence from July 1990 to April 1991.
The Transfer of the Ranch
Petitioner and Paz employed the accounting firm of Davidson,
Eagleson & Co (Davidson, Eagleson). John Eagleson (Eagleson), a
partner with Davidson, Eagleson, was an officer and director of
Paz. Davidson, Eagleson prepared tax returns for both petitioner
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011