David A. Demetree - Page 4

                                        - 4 -                                         
          proprietorship.  Demetree and Associates’ principal business                
          activities were the leasing and management of commercial                    
          warehouses owned by partnerships in which Arthur was a partner.             
          The total management responsibilities relating to Demetree and              
          Associates were minimal (e.g., the collection of rents and                  
          supervision of repairs).  From 1983 through 1991, David                     
          occasionally assisted Arthur by performing services for Demetree            
          and Associates.  David also signed, pursuant to a power of                  
          attorney, Arthur’s name on Demetree and Associates’ business                
          checks and deposit slips, including checks payable to himself or            
          to third parties on his behalf.  Arthur did not deduct the                  
          amounts he transferred to David, issue David Forms W-2, Wage and            
          Tax Statements, or issue Forms 1099-MISC, Miscellaneous Income.             
          Arthur and Naomi reported the income attributable to Demetree and           
          Associates on the Schedules C, Profit or Loss From Business,                
          accompanying their 1983, 1984, 1985, and 1986 joint Federal                 
          income tax returns.                                                         
               In 1986, Arthur and Naomi lent David funds to purchase a               
          one-third interest in a partnership formed to build North Lane              
          Plaza (NLP), a strip mall.  The following year, Arthur and Naomi            
          also lent David funds to start and operate Scooper’s Ice Cream              
          (Scooper’s) in one of NLP’s stores.  Scooper’s produced losses              
          during all its years of operation until David sold it in 1989.              
          In 1987, 1988, 1989, and 1992, David claimed net operating loss             






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011