- 6 - status as of January 1, 1989, and remained in that status through 1993. Petitioner was a C corporation for 1994 through 1996. Petitioner reported gross sales, total income, and taxable income for 1986 through 1996 as shown in table 1. Table 1 Year Gross Sales Total Income1 Taxable Income(Loss) 1986 $2,528,724 $530,635 $36,429 1987 3,022,585 657,051 19,819 1988 3,569,197 843,645 15,816 1989 3,380,615 771,252 (18,214) 1990 3,526,171 884,275 (1,791) 1991 2,888,775 716,812 (6,976) 1992 2,732,920 728,845 118,987 1993 4,197,494 1,015,976 337,405 1994 6,559,036 1,383,467 97,840 1995 9,006,092 2,029,979 167,758 1996 9,920,208 2,326,709 151,566 1 Total income includes gross profit, interest income, and other income. Jack and Mary personally guaranteed all loans by banks to petitioner. C. Jack’s Duties Jack exercised complete control over petitioner’s business since it was founded (1973) and over petitioner since it was incorporated (1977), including the years in issue. He served as petitioner’s president, chief financial officer, chief executive officer, general manager, sales manager, loan officer, credit manager, purchasing officer, personnel manager, advertising manager, insurance agent, real estate manager, and corporate legal affairs liaison. With the exception of sales manager--JackPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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