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We have considered petitioners' arguments regarding all
other deposits that are in dispute and consider them to be
without merit. Petitioners have failed to carry their burden of
proving a nontaxable source with respect to the disputed deposits
and expenditures. Therefore we hold that respondent is sustained
on this issue.
Capital Gains from the Sale of a Partnership Interest in 1986
Prior to the years in issue, Michoff, Jr., had a 50-percent
partnership interest in Michaels & Michaels Autobody Shop (the
autobody shop). At the beginning of 1986, Michoff, Jr., disposed
of half of his partnership interest in the autobody shop,
retaining a 25-percent interest. The parties stipulated that the
amount of capital gain from that disposition was $30,644.
Respondent determined that Michoff, Jr., failed to report this
gain.
Despite these stipulations, Michoff, Jr., argues that he had
no gain from the sale of his partnership interest. Michoff, Jr.,
offered no documentary evidence to disprove respondent's
determinations and chose instead to rely on unsubstantiated
claims on brief. Michoff, Jr., has failed to meet his burden of
proof. We therefore sustain respondent on this issue.
Limousine Activity
In her notice of deficiency, respondent disallowed Schedule C
deductions claimed by Michoff, Jr., on his 1989 income tax return
10(...continued)
he claims to have sold on or prior to Mar. 26, 1990.
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