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During the years at issue, petitioner did not receive any
inheritances, legacies, or devises.
Interest Income
Petitioner sold property to Randy Weldon and Faust Daniels
and took back a note and mortgage on the property. Respondent
determined that petitioner received interest from the following
sources during the years at issue.
1987 1988 1989 1990
Faust Daniels $1,724 $5,165 $5,151 $5,134
Randy Weldon 5,188 5,179 5,170 5,159
Bill Doufexius 1,703
Total 8,615 10,344 10,321 10,293
Petitioner reported interest income of $5,247, $5,195,
$5,136, and $10,072 on his 1987, 1988, 1989, and 1990 tax
returns.
Sale of Property
Trucks
In 1988, petitioner purchased 50 trucks used to haul and
spread salt. Twenty-five of the trucks were used to haul salt
and had dump beds. The remaining 25 trucks were spreader trucks
that were used to spread salt on the roads. The trucks that
contained dump beds cost $3,500 more apiece than the unbedded
trucks. Petitioner paid $411,984 for the trucks, and incurred
fix-up costs of $28,775 in 1988 and $120,230 in 1989.
Petitioner sold some of the trucks during 1988, 1989, and
1990. Petitioner sold 12 trucks with dump beds in 1988 for
$137,285. Petitioner’s basis in the 12 trucks was $126,780. In
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