Estate of David J. Dickerson, Deceased, Dorothy Dickerson, Executor and Dorothy Dickerson, et al. - Page 20

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          business records were kept; there were losses over many years;              
          the Dickersons only reported receipts in one year of operation;             
          and the trees provided personal pleasure because they were                  
          located at the Dickerson's residence.  Petitioners offer no legal           
          argument but to say that they were engaged in the tree farming              
          activity for profit; they offer no evidence but their own                   
          uncorroborated testimony.  Petitioners have failed to meet their            
          burden of proof.  Petitioners are, however, entitled to deduct              
          their expenses to the extent that they received gross income from           
          the activity.  Sec. 183(b)(2).  To the extent that respondent has           
          disallowed expenses in excess of gross receipts for the tree                
          farming activity for the 1989 and 1990 tax years, we sustain                
          Failure To Report Pension Fund Withdrawal in 1987                           
               The Michoff, Srs., made a taxable withdrawal from their                
          pension plan in the 1987 tax year in the amount of $9,047.  The             
          Michoff, Srs., failed to report their pension income.  This                 
          withdrawal was an early distribution from their pension plan.               
          The parties stipulated to the above facts, and the Michoff, Srs.,           
          made no argument in their opening brief concerning the issue.  In           
          their reply brief, the Michoff, Srs., object to the stipulated              
          facts and contend that this withdrawal was a total distribution             
          as a result of the disability of Mr. Michoff, Sr., and therefore            
          the 10-percent penalty should not apply.  See sec.                          
          72(t)(2)(A)(iii).  Gross income includes any amount received from           

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