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Petitioner’s Attempt To Sell Granot Loma
In 1989, petitioner decided to sell Granot Loma. His
decision to do so was influenced by his marital problems and a 1-
day trading loss of approximately $5 million. In early 1990,
Gary Walker, an appraiser, valued the property in excess of $10
million. On April 30, 1990, after discussions and negotiations
with several real estate brokers, petitioner listed Granot Loma
with a broker for an asking price of $12 million. Although the
property generated considerable interest, no reasonable offers
were received. Petitioner renewed the listing once and then
allowed it to expire during 1991.
On his financial statement dated May 31, 1992, petitioner
reported the value of his interest in LFI as $4,551,888. During
the pendency of his divorce, petitioner obtained an appraisal of
Granot Loma that valued the fee simple interest in the property,
as of July 28, 1992, at $3,800,000. That appraisal identified
petitioners as the owners of Granot Loma.
BAC
On May 20, 1988, petitioner purchased a Beechcraft King Air
200 (King Air) and formed BAC to own and operate the King Air.
Articles of incorporation for BAC were prepared and filed in
North Carolina the same day. On August 24, 1988, BAC traded its
King Air for a Sabreliner jet (the Sabre). Petitioner hired
professional pilots to fly the Sabre.
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