-6-
Petitioner has provided evidence specifically showing the
origin of the $57,000 amount, and respondent conceded this amount
on brief. Respondent also conceded $60,000 of the $60,588
deposit, leaving the remaining $588 unexplained and in dispute.
The $208,406 deposit also remains in dispute and unexplained.
The record reflects that petitioner was involved in numerous real
property transactions, including several with Mr. Nelson.
Through Mr. Nelson's testimony, petitioner has also shown that,
at one time or another, over a 5- or 6-year period, Mr. Nelson
held in excess of $200,000 of petitioner's funds. Mr. Nelson
also testified that he returned $115,000 to petitioner in 1987
and accounted for several amounts for specific transactions.
Petitioner, however, has failed to account for his real estate
transactions, some of the proceeds of which respondent has
determined were unreported. Petitioner admits that his approach
to these transactions was informal and that only limited records
are available. His inability to carry his burden is of his own
making.
Without petitioner's identification of the source of the
$208,406 or $588, we are unable to find that those amounts were
not taxable income. Accordingly, we hold that the unexplained
deposits totaling $208,994 constitute income to petitioner, which
he failed to report for the 1986 taxable year.
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