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Expenses were separated into columns for rent, utilities, and
suppliers. Personal expenses were logged by petitioner in the
ledger as a draw. In 1994, Paradise hired a bookkeeper, Mary A.
Hogland, to prepare financial statements and to prepare the joint
Federal return of petitioner and S. Trent.
Petitioner and S. Trent timely filed a joint Federal income
tax return for 1994, claiming a refund of $896. During 1994,
Paradise was the sole source of income for petitioner’s family.
Paradise’s income and expenses were reported on Schedule C,
Profit or Loss From Business, to petitioner’s and S. Trent’s Form
1040.
In 1995, petitioner and S. Trent experienced marital
difficulties. In response to incidents on November 23 and
November 25, 1995, petitioner filed a petition to order S. Trent
to appear for a hearing on domestic abuse with the Second
Judicial District Court for Bernalillo County in New Mexico.
Petitioner also filed a Petition for Order Prohibiting Domestic
Violence on November 27, 1995. On November 13, 1996, a divorce
decree was entered by the court. In the divorce decree, S. Trent
received control of Paradise and retained all of the business-
related material and assets. Pursuant to the divorce decree,
S. Trent assumed all business liabilities including any future
taxes or debts associated with Paradise.
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Last modified: May 25, 2011