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ownership interest and by Dr. McLeod of his 8-percent ownership
interest in the LLC to Dr. Joffe. The sales are reflected in
footnotes to the Schedules K-1, Partner’s Share of Income
Credits, Deductions, etc., prepared for Drs. Joffe and McLeod and
for Laser Centers of America, Inc.
The returns filed by the LLC for 1996-99 include Schedules
K-1 for Drs. Joffe and McKernan and for Ms. Moore (collectively,
the LLC members), which reflect percentage profit and loss
sharing and capital ownership interests for them of 88, 10, and 2
percent, respectively. The LLC’s final return for its short year
ending July 31, 2000, reflects those same percentage interests
for the LLC members at the beginning of the year, and a zero-
percent interest for each at yearend.9
The LLC’s 1996 and 1997 returns reflect no distributions to
the LLC members. The 1998-2000 LLC returns reflect distributions
to the LLC members in the following amounts and percentages of
total distributions:
1998 1999 2000
Member Amount % of Total Amount % of Total Amount % of Total
Dr. Joffe $40,538 67.86 $268,510 63.91 $978,466 68
Dr. McKernan 12,000 20.08 96,979 23.08 287,785 20
Ms. Moore 7,200 12.05 54,642 13.01 172,671 12
Sale of the LLC Membership Interests
On or about November 30, 1999, the LLC, the LLC members, and
Surgicoe Corp. (Surgicoe) entered into a “Membership Interest
9 As discussed infra, the LLC members sold their interests
in the LLC effective July 28, 2000.
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Last modified: November 10, 2007