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Amount Ownership
Partner Received Percentage
Mr. Huse $68,870 39.68%
Mr. Nymark 68,870 39.68
Mr. Steel 34,435 20.64
Total 172,175
In July 1997, the Bochica partners and the insurer settled the
lawsuit for $1.5 million, which was also distributed to the
general partners according to their respective interests:
Amount Ownership
Partner Received Percentage
Mr. Huse $595,238 39.68%
Mr. Nymark 595,238 39.68
Mr. Steel 309,524 20.64
Total 1,500,000
After accounting for expenses of the lawsuit, Mr. and Mrs.
Huse and Mr. and Mrs. Steel reported the amounts received in 1996
and 1997 as long-term capital gain on Schedules D, Capital Gains
and Losses, of their Forms 1040, U.S. Individual Income Tax
Return, in the following amounts:
1996 1997
Mr. Huse $60,342 ---
Mr. & Mrs. Huse --- $557,359
Mr. & Mrs. Steel 30,001 289,827
On March 30, 2000, respondent issued notices of deficiency to Mr.
and Mrs. Steel for 1996 and 1997, to Mr. Huse for 1996, and to
Mr. and Mrs. Huse for 1997, in which he determined:
We have reduced the amount of the capital gain that you
reported by the amounts you received and identified as
additional stock proceeds. It has been determined that
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Last modified: May 25, 2011