Thai V. Pham and Khuy T. Bui - Page 15

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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 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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