David C. Jonson and Estate of Barbara J. Jonson, Deceased - Page 19

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          years that were attributable to the Vulcan investment, and she              
          was made aware of the tax risks by the Vulcan subscription                  
          agreement, with its reference to tax risks, and (for 1982) by the           
          May 13, 1982, newspaper article confirming Vulcan’s status as an            
          “aggressive” and “questionable” tax shelter subject to potential            
          IRS attack.  For all of those reasons, it is clear that Barbara             
          had significant involvement in the family’s financial affairs.              
          In particular, she had reason to know of the tax benefits and               
          potential tax risks associated with the investment in Vulcan.               
                    (c)  Expenditure Levels, Standard of Living, Etc.                 
               There is no evidence that the tax savings generated by the             
          investment in Vulcan resulted in lavish or unusual expenditures             
          benefiting Barbara when compared to prior years’ spending                   
          patterns.  That factor is not determinative, however, as to                 
          whether Barbara benefited from such tax savings.  See Hayman v.             
          Commissioner, supra at 1263.  In this case, it is clear that the            
          tax savings were immensely beneficial to both David and Barbara.            
          For each of the audit years, the losses sheltered in excess of 80           
          percent of David’s income.  The losses, thus, reduced the                   
          Jonsons’ taxes and contributed to their ability to pay for their            
          children’s college educations and still maintain their normal               
          standard of living.  As Barbara freely admitted in filling out              
          the innocent spouse questionnaire sent to her by petitioners’               
          counsel, “IRS tax rates for the upper brackets were very high and           

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