- 4 -
Petitioner is engaged in the business of retail selling of
manufactured homes, also known as mobile homes, trailers, or
trailer homes, hereinafter sometimes collectively referred to as
mobile homes. At all relevant times, Jack and Mary each owned 50
percent of petitioner’s stock. Petitioner’s stock was not
publicly traded.
A. Jack’s Background
Jack served in the U.S. Marine Corps for 3 years. In 1954,
he left the Marine Corps and moved to Dallas, Texas, where he
began a career in the automobile business. Jack served as the
sales, finance, and insurance manager for several General Motors
dealerships. In 1973, he left the automobile business to pursue
a career in the mobile home business.
B. Petitioner’s Origin and Economic Development
Jack began his mobile home retailing business with capital
raised from the $8,000 of equity that he had in his home and a
$50,000 bank loan. He used this capital to establish an
inventory of about six mobile homes. Jack increased his
inventory by buying distressed merchandise at a discount--new
mobile homes that lenders had repurchased from retailers who were
going out of business. He attributed the failures of other
retailers’ businesses to an economic downturn that began in 1973.
Jack did not employ anyone in his mobile home retailing
business during its first year.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011