8 stipulation that petitioner, were he to testify in this case, would state that, in 1988, he reduced his basis in GCC by $244,500. Petitioners assert that this reduction prevented them from taking advantage of deductions in that amount in respect of losses of AB 89 Street Corp., an S corporation into which GCC was merged in 1990, and which, as reflected in the stipulated tax returns, had net operating losses for 1989 through 1992. Our evaluation of this argument takes into account the rule that submitting a case fully stipulated does not lessen the need for petitioners to carry their burden of proof. Borchers v. Commissioner, 95 T.C. 82 (1990), affd. 943 F.2d 22 (8th Cir. 1991). In this connection, we note that, aside from the stipulated assumption agreement, the stipulated tax returns, and the stipulated testimony of petitioner, there is no evidence in respect of the actual existence of an indebtedness of ABDC to GCC or of the amounts or terms of that indebtedness as to interest or time of repayment or of petitioner's basis in GCC before or after the claimed reduction. The evidence in support of petitioners' position is skimpy at best. Tax returns are not proof of the statements contained therein. Lawinger v. Commissioner, 103 T.C. 428, 438 (1994). Nor do we consider the stipulated conclusory statement by the taxpayer sufficient to carry the day in respect of the bookkeeping entries of GCC. Shebester v. Commissioner, T.C. Memo. 1987-246. In Shebester, the taxpayer was a majorityPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
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