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negate all nontaxable sources of income. We decided this issue
in our prior opinion without using the deemed facts. We now find
that petitioners had $200,000 cash on hand on December 31, 1974.
We adjust the net worth analysis to account for that fact.
Hoffman v. Commissioner, 298 F.2d 784, 786 (3d Cir. 1962),
affg. in part on this issue T.C. Memo. 1960-160; Baumgardner
v. Commissioner, 251 F.2d 311 (9th Cir. 1957); Bodoglau v.
Commissioner, 230 F.2d 336 (7th Cir. 1956); Potson v.
Commissioner, 22 T.C. 912, 928-929 (1954). Thus, respondent
is barred from assessing tax for 1975, but is not barred from
assessing tax for 1976 and 1977.
To reflect the foregoing,
Decision will be entered
under Rule 155.
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