- 8 -
A", converting the structure into an apartment/hotel building
containing 56 condominium units. Petitioner was to receive seven
of those units, and retain ownership of the existing 12-cabana
complex.
In a later addendum to their 1993 settlement agreement, the
construction company agreed to build a house for petitioner. The
house would have a value of $100,000 and would be located on one
of petitioner’s other Flamingo Beaches lots.
On his income tax returns for 1992 through 1995, petitioner
claimed business deductions (some of which are in issue in the
instant case) with respect to his Villa del Mar venture for the
following specified expenses:
1992 1993 1994 1995
Depreciation $2,353 $2,210 $2,210 $2,039
Mortgage interest –- –- -– 7,200
Other interest 8,100 10,800 12,111 --
Legal, professional 65,750 52,500 –- 560
services
Supplies 154 215 –- –-
Taxes 18,000 18,000 2,000 –-
Travel 3,493 4,912 –- –-
Wages 48,880 –- -– –-
Funding fee 25,000 –- –- –-
Legal, professional –- -– –- 100,000
& mgt. fees
Security 12,000 12,000 12,000 –-
Telephone –- –- 454 –-
In 1999, petitioner and Ms. Oliveira reopened the 12-cabana
complex for business as a bed-and-breakfast establishment.
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Last modified: May 25, 2011