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Horstmeier had substantial responsibilities as co-owner and
operator of the business college, which left her less time for
such duties, Ms. Scott assumed them. In addition to providing
the services associated with maintaining the Glenview house, Ms.
Scott also assisted Ms. Horstmeier with her work at the business
college without compensation during their first 4 years residing
together.
Ms. Scott was a student and not gainfully employed from 1974
through sometime in 1977. Her parents paid her tuition. She
received money for her support during this period from her
parents and from Ms. Horstmeier. In 1975, Ms. Scott purchased a
Porsche 914 automobile, which required monthly payments of $140,
as well as maintenance.
Sometime in 1977, Ms. Scott began to work at a Wendy’s
franchise and received compensation of an unspecified amount.
She filed her first Federal income tax return with respect to the
1977 tax year.
In January of 1979, Ms. Scott began to receive compensation
for her work at the business college. She began receiving an
hourly wage and eventually received $200 per week.
In the spring of 1979, Ms. Scott and Ms. Horstmeier bought a
20-acre parcel of real property in Wisconsin. They each
contributed to the downpayment of approximately $4,000, and the
property was originally titled in both their names. Ms. Scott
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