Walter Van Eck and Friedgard Van Eck - Page 18

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          tax shelter services rendered to his parents.  Respondent                   
          suggests no amounts for such services.                                      
               Suspicions are not proof.  The GVE Loans were received by              
          Walter from his mother.  Neither gifts nor loans constitute items           
          of gross income.  Sec. 102(a) (gross income does not include                
          gifts); e.g., Ettig v. Commissioner, T.C. Memo. 1988-182 (bank              
          deposits in question were, in fact, loan proceeds received from             
          taxpayer's mother and, thus, not items of gross income).  Except            
          to the extent that there is a reason to believe to the contrary,            
          we believe that the transfers from Walter's mother into Walter's            
          bank accounts were either gifts or loans.  We have found to the             
          contrary to the extent that respondent has convinced us that                
          Walter received fees for management services.2  Except to that              
          extent, Walter has carried his burden of proof that the GVE Loans           
          do not constitute items of gross income to him.                             
               4.  Triad Distribution                                                 
                                  FINDINGS OF FACT                                    
               In 1982, a bank check in the amount of $1,000 drawn on Triad           
          Distribution Co. was deposited by Gertrude into Conn. account               
          7044.  The amount shown on Exhibit 201-GK in the row labeled                
          "Triad Distribution" reflects that deposit (the Triad deposit).             

          2    We recognize that respondent maintains that the management             
          fees in question constitute fees received from Gertrude, Walter,            
          and Keith Martin.  Walter has not shown what portion is allocable           
          to Gertrude and, because of the relative smallness of the amounts           
          involved, we have not estimated.  But cf. Cohan v. Commissioner,            
          39 F.2d 540, 543-544 (2d Cir. 1930).                                        

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