- 13 -
Insurance $10,038 in 1990 in satisfaction of the remainder of the
purchase price, in accordance with the terms of the sale.
Petitioner deposited the proceeds from the sale in WFIC’s
checking account. Petitioner did not report any capital gain
from the sale to Mr. Ihry on his 1990 individual Federal income
tax return.
E. Lone Tree Manor Apartments
On April 1, 1987, petitioner purchased Lone Tree Manor
apartment complex from Investors Real Estate Trust (IRET). IRET
held the mortgage on Lone Tree Manor until 1990. The income and
expenses related to the operation of Lone Tree Manor were
reported on petitioner and Lori’s joint Federal income tax
returns for 1987 and 1988. Lori reported the income and expenses
for Lone Tree Manor on her individual 1989 income tax return. In
November 1990, IRET repossessed Lone Tree Manor. Petitioner did
not report any gain resulting from the repossession of Lone Tree
Manor on his 1990 Federal income tax return. WFIC reported
capital gain of $22,028 from the sale of Lone Tree Manor on its
1990 Form 1120.
II. Other Expenses
Petitioner, Taxman, and WFIC each maintained bank accounts.
Petitioner had signatory authority on all these accounts.
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011