George F. Walker - Page 5

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               completion of condominium per section 4 and wife is                    
               given deed to her unit, or death of the husband.                       
               During 1990, petitioner paid Mary Walker a total of $2,400.            
          Petitioner claimed that these payments were deductible alimony on           
          his 1990 Federal income tax return; however, Mary Walker did not            
          report these payments as income on her 1990 Federal income tax              
          return.                                                                     
               Petitioner filed his 1990 Federal income tax return on                 
          May 24, 1993.  On Schedule C of this return, petitioner reported            
          gross sales of $900 from a business described as "Management                
          Consulting, Training Development, Jewelry, Multilevel".  Cost of            
          goods sold of $483 was reported, and petitioner claimed other               
          expenses totaling $27,485, resulting in a net loss of $27,068.              
               On May 23, 1994, petitioner filed an amended Federal income            
          tax return for 1990.  In the amended return, petitioner filed two           
          Schedules C which separated the activities reported in his                  
          original Schedule C as follows:                                             
                                    Schedule C #1                                     
          Principal Business:  Minority Student Education Programs                    
                              Research, Experimentation                               
               Gross receipts . . . . . . . . . . . . .    -0-                        
               Gross income . . . . . . . . . . . . . .    -0-                        
               Expenses                                                               
                    Car and truck       $9,849.75                                     
                    Insurance           401.66                                        
                    Interest            1,814.58                                      
                    Office expense      1,800.00                                      
                    Rent/other prop.    918.00                                        
                    Repairs and main.   149.05                                        
                    Supplies            1,783.07                                      




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