- 3 - General Motors (GM) Institute and received a degree in mechanical engineering in 1966. During the next 15 years, he worked as an engineer for GM Corp. He married Susan Barnard (Ms. Barnard) on February 14, 1981. Ms. Barnard is a registered nurse. Petitioners owned property in Charlevoix on which they constructed a facility that included a restaurant and bar (collectively, the restaurant) and a 12-room motel (motel). Petitioners began operating the restaurant and the motel in late 1982 as unincorporated businesses and incorporated those businesses in the middle of 1986 under the name Nanny's, Inc. (Nanny's).1 For the remainder of 1986 throughout the end of 1988, Nanny’s operated as a C corporation that reported its income and expenses for Federal income tax purposes on the basis of the calendar year. Nanny's elected to be treated as an S corporation effective with its taxable year beginning on January 1, 1989. Ms. Barnard oversaw Nanny’s daily operation. Nanny’s received most of its income in cash, and petitioners deposited Nanny’s receipts into a cash register. Each morning, Ms. Barnard reconciled the cash in the register to the cash register tape of Nanny’s business for the previous day. Afterwards, petitioners left some of the cash in the register for the current day's 1 Petitioners’ basis in their Nanny’s stock was $10,000 upon incorporation and at all relevant times thereafter (except to the extent that their basis is reduced pursuant to this report).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011