-16-
evidence primarily consists of his testimony, selected checking
and savings account statements, five canceled checks, and three
written statements by his friends. The written statements
constitute ex parte affidavits and are not treated as evidence
under Rule 143(b). Upon review of the evidence presented, we are
not persuaded that the source of the deposits was from nontaxable
income items, except to the extent as follows.
A. 1991
For 1991, petitioner deposited a total of $24,300 in his
checking and savings accounts. Except for the following amounts,
we find the deposits are income to petitioner that is subject to
tax pursuant to section 61(a). Based on the entire record, we
are persuaded that the deposits of the checks for $5,119 and
$6,031 are the return of funds, plus interest, that petitioner
transferred to associates with the intent to prevent his first
wife, Tonia, receiving any money in settlement of divorce.16 In
addition, we find the check for $30 payable to Tonia that
petitioner cashed for her by depositing it in his account is not
taxable income to him. Petitioner's testimony regarding the
source of these amounts is corroborated by the canceled checks
which correlate with petitioner's bank statements. Finally, the
parties stipulated that the $5,000 deposit in savings account #1
16 We find that petitioner has interest income to the extent
the total amount of these two deposits exceeds $11,000. See sec.
61(a)(4).
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