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fide intent on the borrower's part to repay the acquired
funds.
The evidence does not establish that petitioner's receipt of
$350,000 through his check-kiting scheme was based on consensual
agreements between petitioner and the banks to the effect that
petitioner could overdraw his accounts and later repay the banks,
as petitioner contends.
Similarly, the evidence does not establish that petitioner's
receipt of $575,000 by forging Goldman's signature was based on a
consensual agreement between petitioner and Goldman to the effect
that petitioner could forge Goldman's signature and treat the
funds so obtained as a personal loan.
The sparse evidence in the record, however, with regard to
petitioner's receipt of $450,000 from William Marion indicates
(and respondent's brief so acknowledges) that these funds were
obtained by New Gold and Ryer as a loan from William Marion. The
facts that petitioner personally guaranteed the loan and the loan
has not been repaid do not convert this $450,000 into taxable
income to petitioner. The $450,000 that was borrowed from
William Marion is not to be treated as taxable income to
petitioner in the years before us.
In summary, each of respondent's adjustments to petitioner's
1988, 1989, and 1990 taxable income is sustained with the
exception of the $450,000 loan proceeds from William Marion.
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