Tax returns were filed for the Civic Fund .
Now switching over to Kwame's personal tax returns. All filed in a timely fashion agrees the witness.
"Were those signed in front of you?" asks Thomas about the tax returns.
Terrell says they weren't signed in his presence. They were sent to Kwame and Carlita to sign them and then sent to the IRS by the Kilpatricks.
Thomas asks about EPU officers bringing over information for tax returns. Terrell agrees that would happen.
Terrell says he doesn't know who handed the information to the EPU officers.
Witness says that Kwame's specific returns were done by himself and nobody else.
Terrell says that some firms send out disclaimers that they are completely relying on taxpayers for accuracy of information. Terrell says he doesn't typically do that and agrees he didn't do that for the Kilpatricks.
Thomas asking if sometimes taxpayers leave out information as an oversight. Terrell agrees.
Thomas asks if witness has specific recollection over all these years meeting with Kilpatrick.
"We never met face to face it was over a telephone conversation, " says the witness.
Terrell says that Kwame's return was pretty basic in the past.
Thomas asking if primary income was Kwame salary from the city of Detroit. Correct says witness.
Thomas asks if witness noticed drop in salary in 2004. Thomas says there was a 10% pay cut because Kwame agreed to it. Terrell says he didn't know about that, may have read about it at some point.
Witness says that in 2003, Kwame paid $33,457 in taxes for himself and Carlita.
Gerald Evelyn just shows up to court.
Kwame paid $27,368 in taxes in 2004.
Now in 2005, Kwame paid total taxes of $23,819.
In 2006, Kwame paid $21,651. And finally, in 2007, Kwame paid $22,904.
Terrell says that for income you look at W2 wages, taxable dividends, taxable distribution from retirement plan, any capital gains, unemployment compensation, some social security tax also income, any activity related to real estate activity.
Thomas asks if you buy a house and sell a house for a certain price, assuming you put some money for improvements, would the money from that sale be taxable. Terrell says that it is not taxable. So any profit from a house sale not taxable, good to know.
10:55AM So if Kilpatrick lived on Leslie St and then moved into the Mansion and then sold that first house, that wouldn't be taxable. Terrell agrees with that.
Thomas asks if Terrell remembers ever specifically detailing in his conversations what income meant. Terrell says they spoke in broad terms but he did not go over every single detail.
Terrell says that he thinks he only talked to Carlita in what related to child care expenses.
Terrell says he thinks his conversations with Kwame were brief about deductions and income with maybe a follow up conversation.