Sanford M. and Sally Kirshenbaum - Page 9




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                    PETITIONER: That was my IRA, designated as my IRA.                
                    THE COURT: Okay.  Now at some point or other                      
               presumably you would have need for your IRA, correct?                  
                    PETITIONER: * * * Instead of drawing it out from                  
               Fidelity, I’m drawing it out from MHI.                                 
                              *   *   *   *   *   *   *                               
                    PETITIONER: * * * in addition to the increase in                  
               money received because of the rent from Fidelity if I                  
               was making eight percent, I’m making ten or 12 here,                   
               plus there’s a good share that when that property is                   
               sold there will be a capital appreciation at least of                  
               $10,000, so that was a good investment.                                
                              *   *   *   *   *   *   *                               
                    PETITIONER: * * * All I know is that it’s [the                    
               agreement between petitioner and MHI] designated in the                
               corporate files and on that file that it’s my IRA.                     
                              *   *   *   *   *   *   *                               
                    PETITIONER: * * * We don’t have a written                         
               agreement.  If I set up something like this, she would                 
               say okay, you’re the father.  You do it.  But, she has                 
               no legal obligation to do anything that I say.[9]                      

               9  Petitioner corroborates this description of the Veazie              
          property-IRA arrangement in his letter to the Internal Revenue              
          Service dated May 23, 2000, which stated, in part, as follows:              
               I was not pleased with the return I was getting from                   
               Fidelity.  On the Veazie Street investment, with a                     
               purchase price of $52,250 invested, I, with the rental                 
               income, am making over 18% per year in interest, and                   
               have a good opportunity for capital gains when the                     
               property is sold.  This certainly is a lot better than                 
               what I was getting at Fidelity.  This whole transaction                
               is recorded in the corporate records as an IRA                         
               investment from me.                                                    
               The $2,252.85 difference between the purchase price of                 
               $52,250.00 and the $49,997.15 transfer from Fidelity is                
                                                             (continued...)           





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