Raymond F. Kling and Barbara K. Kling - Page 5




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               From 1979 to 1988, Raymond owned a one-third interest in a             
          corporation that owned four video stores.  In 1988, the stores              
          closed because they could not compete with larger video stores              
          such as Blockbuster.                                                        
               Except for his sports memorabilia activity, Raymond was not            
          otherwise employed from 1988 until 1997.  In 1991, Barbara                  
          attended college full time, paying for her schooling with student           
          loans.  She began working as a teacher in May 1992.                         
               In order to supplement their income to cover living expenses           
          incurred from 1990 through 1992, petitioners refinanced their               
          house, maximized their credit card balances, and used money they            
          had saved for their children's educations.  Although some of                
          petitioners' personal expenses were paid out of the National City           
          Bank account, Raymond paid most of petitioners' living expenses             
          with cash.                                                                  
               In 1990, Raymond made a $10,000 profit from an autograph               
          session with Jim Brown.                                                     
               Raymond bought and sold sports memorabilia, sports                     
          memorabilia supplies, and other collectibles during 1991 and                
          1992.  Raymond did not maintain any books or records (including             
          inventory records) regarding the sales and purchases of these               
          items.                                                                      
               In 1991, Raymond traded baseball cards for an automobile               
          worth $2,000.  In 1992, Raymond paid $1,500 for a motor home and            







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Last modified: May 25, 2011