In reply to this question, Dave said this:
@00:32 - I wish I was collecting $80,000 in rental income. I am not. I am not collecting anywhere close to that.
First, let's remember what Teen Mania teaches regarding lying. Lying is "the intent to deceive." Dave's answer here makes it sound as if $80,000 is an astronomically high number that is not remotely close to what he is actually making. He says,
"I am not making anywhere close to that."
Would you consider $78,980 close to $80,000?
Later in the call, when I had a chance to speak with him, I point out that the latest available tax return (at the time) said he was paid $78,980 in rental income. He hesitates in his answer:
@ 00:16 Uh, which year was that for?
In 2008, I may well have been paid $78,00 in 2008. But I'm not renting near the level of property to Teen Mania that I was then.
He goes on to explain that he actually rented 6 more apartments that year than he is currently renting to Teen Mania now. So his current rental income is not $80,000.
Since this exchange, I have obtained Teen Mania's latest tax return for the fiscal year September 2008 - August 31, 2009. According to Dave's statements, would you expect his rental property income to be lower or higher than the previously mentioned $78,930?
According to Schedule J, his rental income that year was $84,370. Keep in mind that this tax return is from only 10 months prior to the statements he made in the conference call, especially:
"I don't make anywhere near that."
Toward the end of the call I ask him if he would tell us what he is currently making in rental income. He says:
@ 1:30 - "I don't actually know what that number is...My wife does my finances.
I find this an odd statement for a man who continually harps on "paying attention to detail." In the first video above, he even states the 3 part process he has to go through to rent to Teen Mania:
1) He has to compile a list of all comparable rental properties in the Lindale area.
2) He has to provide phone numbers, addresses and rates for those properties.
3) He has to propose his rate based on the comparable properties.
In addition, he mentions in the second conversation that:
I also have to turn in a tax return to the IRS and I have to state the value of the property and what I'm making in rental income.
He compiles a thorough report in order to propose his rental rates which are then approved by an "independent auditor" and the Board of Directors. Then, he also has to file the income on his tax return...Given all the paperwork he has to file and hoops he has to (supposedly) jump through how would it be possible to "forget" how much he is making and has made in the two most recent fiscal years?
If these rental income payments were truly ethical and above board, why would he go to such great lengths to hide the truth?