8
We find that the deposits to the Ticketline account were
income to petitioner and were not loan repayments from Finnimore.
See Dean v. Commissioner, 57 T.C. 32, 45 (1971).
Petitioner argues in the alternative that, if the $167,949
is income from the sale of tickets, he is entitled to reduce the
income by the cost of the tickets sold. Petitioner did not keep
adequate records of the moneys he advanced to Finnimore.
Petitioner, therefore, looks to numerous canceled checks and cash
withdrawals, which he maintains were advances to Finnimore.
Petitioner argues that checks payable to cash, in even amounts of
$1,000 or more, were moneys he advanced to Finnimore for the
purchase of tickets. Petitioner concedes that some small portion
of those checks was retained by him for personal purposes but
argues that the balance went to Finnimore for the purchase of
tickets. The amounts set forth in the appendix reflect the
amounts advanced to Finnimore after allowing for petitioner's
concessions. We find that petitioner advanced to Finnimore for
the purchase of tickets $69,700 from the Ticketline account,
$13,300 from the Todge Trust account, $43,250 from the equity
credit line, and $5,000 from the ULC account. These payments are
detailed in the appendix.
Petitioner paid $6,254 for tickets using his credit card,
and this amount is allowable as cost of goods sold.
Petitioner contends that he purchased tickets directly from
a ticket agent with check No. 1076 in the amount of $2,500 and
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