- 14 - Mrs. Magassy relating to the Feadship. Hopkins did not attempt to verify the business purpose of any of the bills she paid relating to the Feadship. During 1995, 1996, and 1997, when Mrs. Magassy visited the Feadship in Florida, she would charge her airline ticket, her hotel and car rental expenses, and her restaurant meals on her personal credit card, and the expenses were treated by SMSM as business expenses. On April 29, 1997, SMSM sold the Feadship to Classic Yachts Restoration, Ltd., for $1.1 million. The charter income and claimed ordinary business expenses and losses of SMSM (as an S corporation) (including the 1997 loss on the sale of the Feadship) relating to the Feadship that were reflected on SMSM’s Federal income tax returns for 1995, 1996, and 1997, and that were passed through to petitioners’ joint Federal income tax returns for each year, are reflected below:Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
Last modified: May 25, 2011