Mark O. Kaplan - Page 4

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          Marc Pays $800,000 to Pleasant Prairie and Lakeview                         
               Contemporaneously with the transactions described above,               
          Marc paid the $800,000 loan proceeds to Pleasant Prairie and                
          Lakeview.  Specifically, on December 29, 1997, Marc issued                  
          Lakeview a $550,000 check, which Lakeview deposited in its                  
          account at the Bank.  Also on December 29, 1997, Marc issued to             
          Pleasant Prairie a $250,000 check, which Pleasant Prairie                   
          deposited in its account at the Bank.  Prior to making this                 
          payment, Marc had an account payable balance due to Pleasant                
          Prairie in the amount of $204,222.                                          
          Pleasant Prairie and Lakeview Pay Petitioner $800,000                       
               On or before January 8, 1998, petitioner borrowed $550,000             
          from Lakeview and $250,000 from Pleasant Prairie.3  Petitioner              
          deposited the proceeds in his account at the Bank.                          
          Petitioner Repays Bank $800,000                                             
               On January 8, 1998, petitioner paid off the note by issuing            
          the Bank a check in the amount of $800,000, drawn on his account            
          at the Bank.                                                                





               3 The parties stipulated that petitioner borrowed the                  
          $250,000 from Lakeview.  On brief, however, the parties appear to           
          agree, consistent with other facts disclosed by the record, that            
          petitioner borrowed the $250,000 from Pleasant Prairie.                     
          Accordingly, we decline to be bound by the apparently inadvertent           
          error in the stipulation.  See Gulf Oil Corp. v. Commissioner, 87           
          T.C. 135, 159 n.4 (1986), affd. 914 F.2d 396 (3d Cir. 1990).                




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