Stanley P. Zurn - Page 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             
               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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