I just have to make one more observation, then I'll move into the background for awhile, as this subject seems to be getting toxic. I don't know if Mr. Morse made legal errors in this case or not - I'm sure someday the federal tax court will decide that, unless he cuts a deal. Assuming the IRS Agent is telling the truth, and I have no reason to doubt him, in 2003 Mr. Morse sold facilities (“land, buildings and fixed assets”) to the Community Development District. Per "the Developer's records”, he obtained payment from the Community Development District totaling $59,909,918, which was the purchase price for property with a total book value of $6,866,215, with the remainder ($53 Million) labeled as "Discounted Value of Amenities - Intangible Asset". Bottom line, the Development District, which the IRS states is under Mr. Morse’s control, now owns the rights to your future monthly amenity fees and Mr. Morse put $53 Million in the bank. Anytime your actual cost is $7 Million and your “gain” is $53 Million, that’s a great deal, even if you are a Wall Street Master of the Universe. I strongly believe in a capitalist democracy, but I doubt that our founding fathers ever thought anyone could become so enriched by doing so little. And keep in mind that this is only one of many deals made between the Developer and the development districts. That’s all I have to say. If you wish to defend Mr. Morse, be my guest. He’s laughing all the way to the bank, I’m sure. Or maybe he’s laughing all the way to the yacht dealership.
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