J.J. Zand - Page 74

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          petitioner's accountant, did not characterize the alleged $10,000           
          payment to Teheran National University as a charitable                      
          contribution, as stated in petitioner's brief, but characterized            
          it as a business expense.  There is no evidence to show the                 
          alleged payment of $10,000 to Teheran National University in 1974           
          was an ordinary and necessary business expense.  Accordingly,               
          petitioner is not entitled to deduct $10,000 as a charitable                
          contribution or as a business expense for a payment to Teheran              
          National University.                                                        
               With respect to the losses claimed in 1975 for the                     
          IDS/McCullough Oil Programs, there are no canceled checks,                  
          invoices, or any primary records in evidence from which it can be           
          determined that any losses were incurred.  There is no evidence             
          of record establishing petitioner's basis.  Consequently, he is             
          not entitled to the claimed losses.                                         
               It is not surprising that petitioner has changed his                   
          position in his brief with respect to the claimed automobile                
          expenses because the evidence presented shows that records were             
          not maintained to distinguish between personal and business use             
          of the automobiles, and that a significant portion of the                   
          automobile use was for the business activities of CDC and other             
          entities, rather than those of petitioner or CTC.  Thus, he                 









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