Michael K. Jones - Page 5

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                  Petitioner has the burden of proof on each of the issues in                          
            dispute.  Rule 142(a).  Petitioner's records have been lost;                               
            this, however, does not relieve him of his burden.  Cady v.                                
            Commissioner, T.C. Memo. 1990-260.  Petitioner concedes that he                            
            received the wages from DOE.  Petitioner did not offer any                                 
            evidence with regard to the interest income or the State tax                               
            refund, and we sustain respondent on these issues.  Furthermore,                           
            while petitioner testified that he incurred some job search                                
            expenses and that he made some charitable contributions, he did                            
            not show that the deductions for these expenses exceeded the                               
            standard deduction amount.2                                                                
                  Regarding the funds received from the Institute, it is well                          
            established that funds received as a loan do not constitute                                
            taxable income to the recipient.  Woodsam Associates, Inc. v.                              
            Commissioner, 198 F.2d 357 (2d Cir. 1952), affg. 16 T.C. 649                               
            (1951).  For tax purposes, a bona fide debt is one arising from a                          
            "debtor-creditor relationship based upon a valid and enforceable                           
            obligation to pay a fixed or determinable sum of money."  Sec.                             
            1.166-1(c), Income Tax Regs.  Further, under section 102(a),                               
            gross income does not include amounts received "'out of                                    

            2   Petitioner testified that he made charitable                                           
            contributions of approximately $30 each week, or $1,560 for the                            
            year.  He also testified that he had job search expenses of                                
            approximately $100 each month for the first 2 or 3 months of                               
            1990.  Petitioner also contends that his monthly living expenses                           
            of $850 were deductible as job search expenses; however, he was                            
            employed from at least very early in 1990, and these expenses                              
            were nondeductible living expenses.  Sec. 262.                                             




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