Csaba L. Magassy and Frances H. Magassy - Page 5

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               In the March 2, 1990, addendum to the written purchase                 
          contract between petitioner and Boats, Yachts & Ships, it was               
          stated that approximately $300,000 of the proceeds to be received           
          from petitioner on his purchase of the Feadship would be used by            
          Boats, Yachts & Ships to pay for a “complete refurbishment” of              
          the Feadship.                                                               
               Although Mark Mogul and Norman were not required to share in           
          either the subsequent costs of restoration or maintenance of the            
          Feadship, in the written contract dated March 1, 1990, petitioner           
          agreed to share with Mark Mogul and with Norman all of the                  
          profits realized on a subsequent sale of the Feadship by                    
          petitioner.  Under this contract, on a subsequent sale of the               
          Feadship, petitioner was to retain 75 percent of any profits, and           
          Mark Mogul and Norman were to divide equally 25 percent of any              
          profits.                                                                    
               At the time of his purchase of the Feadship in March of                
          1990, petitioner had no written business plan for the restoration           
          and resale of the Feadship, and, at trial, petitioner had no                
          recollection as to how the above percentage split of any profits            
          that might be realized on a resale was agreed to.                           
               On May 9, 1990, a second marine survey of the Feadship was             
          prepared.  Therein, it was stated that the fair market value of             
          the Feadship was $1.85 million, that if the Feadship was restored           








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