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Mrs. Ortiz was not involved in her husband's wholesale used
car business, R&X Auto Sales.
Mr. Ortiz and R&X Auto Sales
Mr. Ortiz was in the wholesale used car business and
operated R&X Auto Sales. Most of his business involved
purchasing automobiles at auctions and then selling them to
dealers in Puerto Rico. This business required Mr. Ortiz to
handle checks in amounts as high as $30,000. He occasionally
sold used cars to local individuals. Mr. Ortiz deposited car
payments from individuals into petitioners' personal bank
account. He also deposited rent payments from Angels Transport
into petitioners' personal bank account during 1991 and 1992.
Angels Transport was a business that did mechanical work on some
of petitioners' property in Orlando.
Mr. Ortiz had a license that allowed him to purchase
automobiles at auctions. As part of his business, he allowed
other salesmen to purchase automobiles with his license. Mr.
Ortiz charged the salesmen $100 for each car they purchased with
his license. The salesmen would pay him for the price of the
automobiles purchased in addition to the $100 fees. The money
received from these buyers was included by respondent in
determining the income of Mr. Ortiz for 1991 and 1992, and the
price paid for the cars purchased by the buyers was included in
cost of goods sold.
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