Daniel R. Leavell and Eva Lovene Leavell - Page 17

                                                 - 17 -                                                   
                 At trial, little evidence was presented with regard to these                             
            claimed expenses.  With regard, however, to the $106,801 claimed                              
            for 1985, there was admitted into evidence at trial an exhibit                                
            that does appear to substantiate $21,222 in trucking expenses                                 
            incurred in 1985 by L & L Supply, which amount we allow.                                      
                 The burden of proof with regard to petitioners' entitlement                              
            to these claimed expenses is on petitioners.  Rule 142(a); Welch                              
            v. Helvering, 290 U.S. 111 (1933).  Petitioners have provided no                              
            basis for further estimating the operating and trucking expenses                              
            of L & L Supply.  With the exception noted of $21,222 in trucking                             
            expenses for 1985, we deny petitioners' claim to additional                                   
            operating and trucking expenses with regard to L & L Supply.                                  
                 With regard to claimed additional inventory or cost-of-                                  
            goods-sold expenses of L & L Supply, petitioners, on brief,                                   
            concede the figures respondent used each year for beginning and                               
            ending inventory of L & L Supply.  At trial, petitioners offered                              
            exhibit 26 as to 1986 purchases and exhibits 6 and 24 as to 1987                              
            purchases of L & L Supply.  Information, however, in those                                    
            exhibits is suspect.  For example, in exhibit 26 a claimed                                    
            payment of $22,779 for an inventory item appears actually to be a                             
            payment to an attorney.  In exhibits 6 and 24, certain claimed                                
            payments for inventory items are represented by cashier's checks                              
            that show petitioners as payees.  Petitioners claim that since                                
            many suppliers would only deal with them in cash, by cashing the                              






Page:  Previous  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  Next

Last modified: May 25, 2011