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petitioner's 1988 increase in salary from KBI, and (2) amounts
KBI loaned petitioner.2
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
The stipulation of facts and attached exhibits are incorporated
herein by this reference.
KBI was a California corporation with its principal place of
business at 6321 South Hoover Avenue, Whittier, California. KBI
was a general contractor in the construction industry. KBI's
gross sales from 1989, 1990, 1991, and 1992 were $30,491,534,
$23,006,897, $22,239,334, and $18,831,235, respectively. KBI
ceased to operate sometime during middle to late 1993.
From 1977 through 1993, petitioner (Mr. Solaas) was the
president and sole shareholder of KBI. Mr. Solaas actively
participated in the company's projects--he arrived early to work,
spent time with the estimating department and project management,
visited construction sites, and worked on marketing KBI.
2 On brief, respondent argues for the first time that KBI's
purchase of a one-third interest in a condominium in Mexico that
KBI used to entertain clients was a transfer by KBI to Mr.
Solaas. Generally, we do not consider issues that are raised for
the first time at trial or on brief. Foil v. Commissioner, 92
T.C. 376, 418 (1989), affd. 920 F.2d 1196 (5th Cir. 1990); Messer
v. Commissioner, 52 T.C. 440, 455 (1969), affd. 438 F.2d 774 (3d
Cir. 1971). This matter was not argued until briefing, therefore
we do not consider it to be before the Court.
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