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1. Claimed Selling Expenses
Petitioner argues that $13,873 of claimed selling expenses
should be netted from the gross amounts transferred to him by
ACT. The record is largely silent about these claimed selling
expenses, who incurred them, when, or why. Petitioner’s position
here is inconsistent with his concession in Briggs v.
Commissioner, T.C. Memo. 2000-380, that the full $199,490 is
includable in his gross income. In Briggs, petitioner did not
claim any deduction or offset for the $13,873 of claimed selling
expenses. As previously noted, petitioner has agreed to be bound
by the record compiled in Briggs. Petitioner has failed to
establish his entitlement to any offset for selling expenses
here.
2. Amounts Attributable to Covenant Not To Compete
Petitioner argues that $82,600 of the transfers in question,
representing one-fourth of the $330,400 initial payment from JSL
with respect to the $500,000 agreed-upon consideration for the
covenant not to compete, represents his own income rather than a
transfer from ACT. We disagree.
The UFTA defines “Transfer”, in relevant part, as “every
mode, direct or indirect, * * * of disposing of or parting with
12(...continued)
See Powers Photo Engraving Co. v. Commissioner, 17 T.C. 393
(1951), remanded on other grounds 197 F.2d 704 (2d Cir. 1952);
Griffiths v. Commissioner, T.C. Memo. 1994-637.
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