- 239 -
for the stock that they purported to purchase was reasonable and
appropriate. See Dixon II, 62 T.C.M. (CCH) at 1486-1491, 1991
T.C.M. (RIA), at 91-3027 to 91-3034. Indeed, Judge Goffe found
that Mr. Kersting had failed to explain clearly, consistently, or
credibly how he had determined the value of Kersting stock upon
both its sale and reacquisition from test case petitioners and
other Kersting program participants. See id. at 1487, 1991
T.C.M. (RIA), at 91-3030.
Judge Goffe noted that Mr. Cravens had testified that his
purpose for entering into the Kersting programs was "mainly" for
tax shelter, that Mr. Cravens had failed to offer any other
reason for his participation in the Kersting programs, and that
Mr. Cravens had opened and closed two Kersting programs (stock
subscription plans) during a 2-year period (1979 and 1980)
without any economic profit or loss other than being out-of-
pocket the cash payments on his leverage notes. See id. at 1488,
1991 T.C.M. (RIA), at 91-3031.
As with several other test case petitioners, Judge Goffe
disregarded Mr. Thompson's testimony that he expected to profit
from his participation in the Kersting programs on the ground
that Mr. Thompson's testimony was vague and not supported by the
record. Judge Goffe rejected Mr. Thompson's argument that his
participation in the First Savings acquisition contributed to his
profit motive for participating in the Kersting programs at
issue. See id. at 1489-1490, 1991 T.C.M. (RIA), at 91-3032 to
91-3033.
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