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Petitioner’s failure to keep more accurate records or
produce more convincing evidence lessens the probative quality of
his contentions. Based on the record before us, we hold that
$25,000 of the legal expense may be claimed on Schedule C and the
remainder on Schedule A.
E. Rental Expenses Deduction
Respondent has conceded that petitioner is entitled to the
rental expense deduction in the amount of $10,365, claimed on the
Schedule C of his 1991 Federal income tax return.
2. Schedule D Capital Gain Adjustments
On Schedule D of his 1991 Federal income tax return,
petitioner reported a short-term capital gain in the amount of
$825,000 in connection with the sale of real property.
Subsequently, petitioner elected to report this gain under the
installment method by filing an amended return. Respondent, in
turn, adjusted petitioner's income tax liability to reflect the
installment sale. Respondent then disallowed petitioner's
installment method election and determined that the full amount
of the gain realized from the real property sale should be
recognized in 1991.
Additionally, respondent adjusted petitioner's Schedule D to
reflect unreported capital gains from the sale of stocks in the
amount of $39,393. Petitioner's return failed to incorporate
information with respect to the stock sales. At trial,
petitioner presented documentation substantiating his basis in
the stocks sold in 1991. Respondent conceded that, instead of
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