3abn Confirms Real Estate Transaction, & Hints of Piano Sale Besides Options

[Pickle]

In another post we reported on publicly available documents that indicate that in 1998, 3ABN sold a house to Danny and Linda Shelton for $6,139, and that they then turned around and resold it 7 days later for $135,000.

3ABN has confirmed on their 1998 Form 990 that they did indeed sell a house in 1998 for $6,129 (why the $10 discrepancy?). 3ABN has also acknowledged on that 1998 Form 990 that they sold this house at an incredible book loss of $46,652.05, instead of selling it at Fair market Value as Danny did one week later. 3ABN also has acknowledged on the same Form 990 that they paid Danny compensation in 1998 of but $49,862.66, which probably means that they did not report the house given to their corporation president and director as compensation. (How could they have reported the house as both a loss and compensation? I don't think they could have.)

See page 13 of 3ABN's 1998 Form 990.

The one question that remains regarding the real estate transaction is whether Danny reported it on his tax return as a short-term or as a long-term capital gain.

Also of interest on page 13 of that Form 990 is the sale of a piano with a book value of $0, suggesting that the piano may have been donated. This piano was sold for $2,000, the same amount, if I recall correctly, that Danny Shelton claimed that AToday alleged that 3ABN had sold a donated, expensive grand piano to his brother for.

Anyone want to contact 3ABN and see if they can identify what piano this one was that was sold in 1998?

The astute may find other items of interest in these 990's. Gailon has.

[Fran]

In another post we reported on publicly available documents that indicate that in 1998, 3ABN sold a house to Danny and Linda Shelton for $6,139, and that they then turned around and resold it 7 days later for $135,000.

3ABN has confirmed on their 1998 Form 990 that they did indeed sell a house in 1998 for $6,129 (why the $10 discrepancy?). 3ABN has also acknowledged on that 1998 Form 990 that they sold this house at an incredible book loss of $46,652.05, instead of selling it at Fair market Value as Danny did one week later. 3ABN also has acknowledged on the same Form 990 that they paid Danny compensation in 1998 of but $49,862.66, which probably means that they did not report the house given to their corporation president and director as compensation. (How could they have reported the house as both a loss and compensation? I don't think they could have.)

See page 13 of 3ABN's 1998 Form 990.

The one question that remains regarding the real estate transaction is whether Danny reported it on his tax return as a short-term or as a long-term capital gain.

Also of interest on page 13 of that Form 990 is the sale of a piano with a book value of $0, suggesting that the piano may have been donated. This piano was sold for $2,000, the same amount, if I recall correctly, that Danny Shelton claimed that AToday alleged that 3ABN had sold a donated, expensive grand piano to his brother for.

Anyone want to contact 3ABN and see if they can identify what piano this one was that was sold in 1998?

The astute may find other items of interest in these 990's. Gailon has.

Thanks, Bob, for making the 990's for 1998, 1999, & 2000 on http://www.save3ABN.com.

I was happy to read Snoopy's news on the changes in progress on the IRS Form 990. Maybe with all the problems that seem to be front and center lately, this is a move in the right direction.

Changes would clearly make things more transparent for the end user. Auditors will have an easier time with the returns.

[PeacefulBe]

When was the supposed sale of the piano to Tommy? I did a search of the posts in this 3abn Forum to see if I could link to the AT article that first reported the sale of the expensive grand piano to Tommy Shelton. The link to the article that Fran had posted last year no longer goes to the article. A Google search did not find the article either.

Does anyone have that article in their email archives so it could be posted here?

I do recall that on the February 15, 2007 3abn Live show aired to rebut AT's article on Tommy's retirement, Danny, et. al., made it a point to bring up that AT had backtracked on their original piano sale story after further investigation.

[lurker]

When was the supposed sale of the piano to Tommy? I did a search of the posts in this 3abn Forum to see if I could link to the AT article that first reported the sale of the expensive grand piano to Tommy Shelton. The link to the article that Fran had posted last year no longer goes to the article. A Google search did not find the article either.

Does anyone have that article in their email archives so it could be posted here?

I do recall that on the February 15, 2007 3abn Live show aired to rebut AT's article on Tommy's retirement, Danny, et. al., made it a point to bring up that AT had backtracked on their original piano sale story after further investigation.

I couln't find the original article either but did find this one where Danny states that there was another older donated piano which they did sell to a Shelton family member for a modest price. http://tinyurl.com/2zpyaq

This post has been edited by lurker: Jun 15 2007, 10:04 AM

[Pickle]

If the one sold to Tommy was sold at below Fair Market Value, then there is a problem, even if the piano sold was the piano that was replaced by the donated piano, not the donated piano itself.

[Rosyroi]

I couln't find the original article either but did find this one where Danny states that there was another older donated piano which they did sell to a Shelton family member for a modest price. http://tinyurl.com/2zpyaq

I remember Danny discussing the piano situation on world wide television and wondered "Why the need to mention it?" His answer created more questions and I didn't feel satisfied with the answers he gave.

Rosyroi

This post has been edited by Rosyroi: Jun 15 2007, 10:33 AM

[lurker]

On one of the new 990's I saw COGS and wondered if it means Church of God something?

[Pickle]

Where did you see that?

[lurker]

Where did you see that?

I was told that it means cost of goods sold. Silly me, it would have been a good joke if I had known what it really meant. I'm learning about accounting - among other things.

[PeacefulBe]

I remember Danny discussing the piano situation on world wide television and wondered "Why the need to mention it?" His answer created more questions and I didn't feel satisfied with the answers he gave.

Rosyroi

Lurker,

Thanks for the link to the article!

PB

[Pickle]

The original correction on the piano story is at http://www.atoday.com/6.0.html?&tx_ttn...Hash=7410d7a570.

[Fran]

I was told that it means cost of goods sold. Silly me, it would have been a good joke if I had known what it really meant. I'm learning about accounting - among other things.

Lurker;

You guys/gals are killing me!

Everytime I log on, I think I have landed in the Humor Section~ Love it!

[Fran]

I CAN READ IT - CAN YOU?

Fi yuo cna raed tihs, yuo hvae a sgtrane mnid too.
Cna yuo raed tihs? Olny 55 plepoe can.

i cdnuolt blveiee taht I cluod aulaclty uesdnatnrd waht I was rdanieg. The phaonmneal pweor of the hmuan mnid, aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it dseno't mtaetr in waht oerdr the ltteres in a wrod are, the olny iproamtnt tihng is taht the frsit and lsat ltteer be in the rghit pclae. The rset can be a taotl mses and you can sitll raed it whotuit a pboerlm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Azanmig huh? yaeh and I awlyas tghuhot slpeling was ipmorantt!

Reading about 3ABN is much like reading the above paragraph. God has given us such wonderfully made brains that we are able to read the above.

We have been sorting through masses of information. As we read, our minds affirm that "This is not Sabbath School" here in the 3ABN Threads at BlackSDA. It has sort of been like reading the above paragraph.

The information has sometimes come in one jumbled up blob. Yet, if we can get the 1st and last letter right we can figure out the rest.

Truth can and has been found. I believe God has used his gift of discernment through some posters here. Those posting untruth can't see, but those speaking truth are clearly understood.

I am truly blessed for being here to witness God's mighty power to lead us into all truth.

[Artiste]

[b]
The information has sometimes come in one jumbled up blob. Yet, if we can get the 1st and last letter right we can figure out the rest.

Very interesting, Fran!

You mentioned in the "strange mind reading exercise" that only 55 people could read it. Was that 55 people out of some total? Or a percent?

[Shiny Penny]

If the one sold to Tommy was sold at below Fair Market Value, then there is a problem, even if the piano sold was the piano that was replaced by the donated piano, not the donated piano itself.

Fair Market Value is subjective. Always will be. If you ask 10 different real estate agents to give independent valuations of a piece of real estate, you will get 10 different values - that are hopefully all in the same ball park.

Fair Market Value is what a willing buyer and a willing seller, who are independent and disinterested parties, are willing to pay/receive for an asset. While this piano deal is a related-party transaction, it does not necessarily mean that one party was enriched at the other's expense.

Assume the piano's FMV was appraised in the range of $2,500 - $4,000 and 3ABN gets two offers to buy the piano. One offer is $2,500, but stipulates that 3ABN must pay for transporting the piano to its new destination and transportation costs are about $750. The second offer is $2,000. And there are no other offers in part because the piano has a major defect.

What would you do?

Reading about 3ABN is much like reading the above paragraph. God has given us such wonderfully made brains that we are able to read the above.

sw smthng smlr nc whr thy tk wy ll th vwls nd t ws qt sly nderstd.