Michael J. Downing and Sandra M. Downing - Page 58

                                       - 58 -                                         
               (e)  Michael’s Accumulated Savings.--Originally, Michael               
          told respondent’s revenue agent that, at the beginning of 1994,             
          he had a cash hoard of $180,000, which he had accumulated over              
          the years.  At trial, Michael testified that he had “Roughly                
          * * * around 60 to 70,000" in the cash box at the beginning of              
          1994 and that he “ran out of money a year after I bought the                
          Metairie Court house”, which he bought on March 24, 1995.                   
          Respondent allowed as a starting 1994 cash hoard only the                   
          remaining net proceeds of the sale of the Newman property,                  
          together with the credit card advances, 1994 child support, and             
          deposit refund, and treated the entire allowed amount as having             
          been spent in 1994; respondent has not allowed any starting 1995            
          cash hoard.  Petitioners do not appear to have taken any position           
          as to how much of their claimed cash hoard was spent in 1994                
          (except for Sandra’s testimony that she had told Klimkiewicz that           
          all the remaining net proceeds of the sale of the Newman property           
          had been spent by the end of 1994), how much was spent in 1995,             
          and how much was spent (consistent with Michael’s above-quoted              
          testimony) in early 1996.  On brief, petitioners appear to have             
          abandoned Michael’s $180,000 contention and instead adopted as              
          their position Michael’s above-quoted trial testimony.                      
               (i)  For Cash Hoard                                                    
               Considerations pointing toward cash hoard include the                  
          following:  (1) Respondent has already accepted the idea that               







Page:  Previous  48  49  50  51  52  53  54  55  56  57  58  59  60  61  62  63  64  65  66  67  Next

Last modified: May 25, 2011