Walter Van Eck and Friedgard Van Eck - Page 16

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          Walter by attacking his veracity.  In evidence is an affidavit of           
          Walter's made in connection with his divorce from Kosydar.  Joint           
          Exhibit 136-EF.  That affidavit is dated July 17, 1987.  In that            
          affidavit, Walter declares, among other things: (1) "The number             
          and amount of loans * * * from my parents has steadily decreased,           
          and has reached the point of zero" and (2) "My parents' financial           
          condition has deteriorated sharply in the last years, and they              
          are virtually insolvent, with no cash assets of any kind                    
               The parties have stipulated that, if Gertrude were to                  
          testify, she would testify that, during 1991 and other years, she           
          borrowed money from third parties and, thereby, was able to make            
          loans to Walter.                                                            
               There is no question but that the amounts shown on Exhibit             
          201-GK as GVE Loans (the GVE Loans) represent deposits to bank              
          accounts of Walter's.  We have said:  "A bank deposit is prima              
          facie evidence of income and respondent need not prove a likely             
          source of that income."  Tokarski v. Commissioner, 87 T.C. 74, 77           
          (1986).  Here, however, we know the source of the deposits, at              
          least in the sense of knowing from whom they came, Walter's                 
          mother.  Given the conclusions naturally to be drawn from a                 
          transfer of funds from a parent to a child, respondent does not             
          rest on the fact of the deposits as establishing income.                    
          Respondent posits the necessary further inquiry as to the GVE               
          Loans and other amounts received from family members as follows:            

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