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transaction. Moreover, we find incredible petitioners’
explanation for why Inter-Con, rather than Jerry, provided the
funds to Ram. According to petitioners, it was more convenient
to use the Inter-Con account rather than Jerry’s personal account
that was kept approximately 30 miles from Ram’s offices. We
consider this explanation to be an unsupported, after-the-fact
rationalization in support of petitioners’ position as to the
loans. We conclude that Jerry may not increase his basis in Ram
on account of the $60,000 November Inter-Con payment.5
December 1995 Payment
Perry wrote a $100,000 check to Ram on December 5, 1995, and
TSI reimbursed Perry on the same day. Perry testified that he
advanced these funds on his brother’s behalf, that he did not
have sufficient personal funds to cover his check without being
reimbursed by Jerry, and that he considered the funds he received
from TSI as coming from Jerry. The parties also stipulated a
$100,000 promissory note dated December 5, 1995, executed by Ram
in favor of Jerry. We find this evidence, in light of the
credible evidence in the record, to be inadequate to meet
petitioners’ burden as to this transaction. On the basis of the
record as a whole, we simply cannot conclude that this $100,000
payment constituted an economic outlay by Jerry or that it
5 For similar reasons, we also conclude that Jerry may not
increase his basis in Twist-Tex on account of the $65,000
November Inter-Con payment.
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