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however, was sophisticated in real estate and business matters
and was aware that Albrecht was interpreting the partnership
agreement in a way that was incorrect. During trial, Hillgren
admitted that he knew better and that he had negotiated better,
yet he was willing to take the inconsistent positions on the
returns knowing that it would benefit his children and,
implicitly, that he would avoid or reduce tax on the
distributions.
Respondent also questioned why Albrecht instructed
M. Higgins to appraise the limited partnership interest as though
Hillgren had a 25-percent profit interest, although the
partnership tax returns were filed with a .05-percent interest.
Respondent’s questions related to a letter written by Albrecht to
Higgins, Marcus & Lovett, Inc., regarding how to appraise
Hillgren’s interest. Albrecht testified as follows:
Q You advised Mark Higgins to appraise the
partnership interest as though Mark Hillgren had a
25 percent profits interest in the partnership,
correct?
A Well, I don’t know if I did or not, or whether
I’m--
Q You can take a minute and look at the letter if
you need to.
A Well, I don’t know--I just don’t recall, I--this
letter is obviously written as a response to the report
that they had written and I would have to compare it to
the report to see what I actually recommended by this.
I--it’s obviously something that I had my office
type up, and I signed the letter, but I would have to
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