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Trust, with a small portion conducted under the name Bioactive
Kansas Trust. During 1999, the business was conducted through
retail stores in Kansas and one store in Texas. Separate books
and bank accounts were maintained for the Kansas stores and the
Texas store.
Bioactive Kansas Trust filed a Form 1041, U.S. Income Tax
Return for Estates and Trusts, for 1999. On Schedule C, Profit
or Loss From Business, Bioactive Kansas Trust reported gross
receipts of $66,003. The gross receipts reported by Bioactive
Kansas Trust were attributed to petitioners in the statutory
notice of deficiency sent to petitioners.
Stejskal Enterprises Trust filed a Form 1041 for 1999. On
Schedule C of that return, Stejskal Enterprises Trust reported
gross receipts of $781,121 and cost of goods sold of $397,751.
The cost of goods sold amount was computed on the Schedule C as
follows:
Inventory at beginning of year $171,607
Purchases 448,052
Total 619,659
Less: Inventory at end of year 221,908
Total cost of goods sold $397,751
The trial balance for Stejskal Enterprises Trust as of
December 31, 1999, showed purchases in the amount of $397,751.
The beginning inventory reported on Schedule C coincided with the
amount reported at the end of 1998. Neither the trial balance
nor any other record produced by petitioners showed an amount for
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Last modified: May 25, 2011