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Although we conclude that the photocopy of the lease
agreement is admissible, we remain unconvinced that petitioners
have satisfactorily proven their entitlement to a deduction of
$7,200 for lease of the sewing machines. We are not convinced
that the lease agreement establishes conclusively that
petitioners disbursed the monthly payments called for therein.
Petitioner Bui produced the only testimony with regard to this
issue, and we are not required to accept her self-serving
testimony. Niedringhaus v. Commissioner, 99 T.C. 202 (1992).
Additionally, petitioner Bui's testimony is less than credible
with regard to this matter. Petitioner Bui first testified that
she paid 3 months' rent in advance when she picked up the sewing
machines in January 1988. Petitioner Bui subsequently testified
that she paid the first 3 months' rent in late February 1988. It
is the occurrence of inconsistencies such as this that cast doubt
on the credibility of petitioners' argument.
Petitioners have failed to establish their entitlement to a
business expense deduction with respect to the $7,200.
Accordingly, respondent's determination is sustained as to this
issue.
Issue 3. Unreported Income
In the notice of deficiency issued to petitioners for
taxable year 1988, respondent adjusted petitioners' gross
receipts by $63,847. After concessions by the parties, the
amount in dispute has been reduced to $14,000. Petitioners
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