Caralan Trust, et al. - Page 13




                                       - 13 -                                         
               One or both of the J. Shirleys personally performed all or             
          substantially all of the consulting services generating the gross           
          receipts of $179,791 reported by Alexion trust.                             
          Caralan Trust                                                               
               Caralan Trust is a trust created by the J. Shirleys.                   
          Caralan Trust was created on September 1, 1994.  In 1995, the               
          J. Shirleys and C E Shirley Trust were the beneficiaries of                 
          Caralan Trust.                                                              
               In 1995, one or the other, or both, of the J. Shirleys had             
          signatory authority over Caralan Trust’s bank accounts.  The                
          J. Shirleys used such bank accounts to pay certain of their                 
          personal expenses in 1995.                                                  
               For 1995, Joseph Shirley made a return of Federal income tax           
          for Caralan Trust on Form 1041, U.S. Income Tax Return for                  
          Estates and Trusts (the Caralan Trust 1995 return).  He signed              
          that return as a fiduciary.  In that return, Caralan Trust                  
          reported as items of gross income $4 of interest and the $101,437           
          of income claimed as a distribution by Alexion Trust to it.  It             
          deducted $24,165 as a loss from a rental activity (the rental               
          activity), and reported total income of $77,276.  It further                
          deducted $42 for a claimed charitable deduction, and it reported            
          “Adjusted total income” of $77,234.  From such adjusted total               
          income, it deducted $77,234 on account of distributions of income           
          in the amounts of $13,753 and $63,481 to the J. Shirleys and                






Page:  Previous  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  Next

Last modified: May 25, 2011