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to pay many of petitioners' personal, living expenses. Also,
given petitioner wife's modest income in these years, she must
have used petitioner husband's unreported income to buy the
Tanglewood home for $175,000 in 1987, and to build the Alden home
for $160,000 in 1989.
We believe that petitioner wife fully benefited from the
omitted income. We believe that she fully shared in the tax
savings from the omitted income and that the understatements let
her maintain a standard of living that she would not have enjoyed
otherwise. See Scarafile v. Commissioner, T.C. Memo. 1991-512.
To reflect the foregoing,
Decision will be entered
under Rule 155.
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