David W. Chiu - Page 15

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                  The amount of mortgage interest claimed by petitioner as a                             
            deduction on the return was $5,760.12  As substantiation,                                    
            petitioner offered into evidence, and respondent did not object                              
            to, six canceled checks that petitioner testified were written to                            
            make payments on his home mortgage to Bank of America.  The                                  
            checks had only petitioner's name printed on them, were signed by                            
            petitioner, and were made payable to the Bank of America.  The                               
            six checks bore the following dates and amounts:                                             
                  January 31, 1990                     $1,894.48                                         
                  April 1, 1990                        1,894.48                                          
                  May 2, 1990                          914.48                                            
                  June 1, 1990                         949.48                                            
                  July 6, 1990                         1,292.53                                          
                  August 5, 1990                       1,128.53                                          
                  Pursuant to a post-trial order to reopen the record,                                   
            petitioner's Exhibit 9, a document entitled "Annual Statement of                             
            Account for 1990" from the Bank of America as lender, was                                    
            received into evidence.13  The statement contains an account                                 
            number matching the last seven digits of the number handwritten                              
            on the top of each check admitted into evidence and lists                                    
            petitioner and another individual (presumably petitioner's wife)                             
            as borrowers.  The statement further indicates it is a                                       

                  12Although petitioner's trial memorandum listed the claimed                            
            mortgage interest deduction as $3,176, we believe this figure                                
            resulted from a clerical error.  Petitioner's 1990 return claimed                            
            a deduction for State and local income and real estate taxes of                              
            $3,176 and a deduction for mortgage interest of $5,760.  The                                 
            trial memorandum mistakenly reversed these figures.                                          
                  13See discussion supra p. 7.                                                           




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