[Rennes Templar]

I know thats not what happened but what is the difference in Reid donating the land to the company vs. someone else donating money to the company in Reids name? Either way he can clean up.

[Defiant]

The "donation" by Reid of the land is not a "donation" like a gift. It is a common way that Partnerships obtain their assets. One party "donates" land, another donates expertise and/or financing, maybe another partner donates equipment, and they work out an agreement on how they will share the partnership profits and losses.

Had someone donated money in Reid's name to the partnership, that would be income to Reid, and it would have needed to be reported as such. There would also have to be a legitimate reason for someone to be giving Reid such a gift. For Reid to be donating capital (the land) to a partnership in which he is going to be a 75 percent shareholder is not unusual. You people are hung up on the term "donation", which in this context does not mean a gift. It refers to the capital contribution by a partner to the partnership.