Eric L. and Kay K. Jones - Page 12

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            Commissioner, 87 T.C. 74, 77 (1986); see Jackson v. Commissioner,                         
            19 T.C. 133, 145 (1952), affd. 207 F.2d 857 (10th Cir. 1953).                             
            Under the circumstances of the instant case, we are not required                          
            to, and we generally do not, rely on petitioner's testimony to                            
            sustain petitioners' burden of proving error in respondent's                              
            determinations.  See Geiger v. Commissioner, 440 F.2d 688, 689-                           
            690 (9th Cir. 1971), affg. per curiam T.C. Memo. 1969-159; Wood                           
            v. Commissioner, supra; Tokarski v. Commissioner, supra.                                  
            Consequently, we conclude that petitioners have not established                           
            that the alleged advances in the amount of $7,020 to two or three                         
            individuals constitute bona fide debt that is deductible as a                             
            business bad debt.                                                                        
                  As to the bad debt deduction claimed by petitioners for the                         
            alleged worthlessness of capital stock in Annabelle's restaurant,                         
            petitioners conceded that they paid $3,000 to Annabelle's "for                            
            its capital stock."  Petitioners, however, argue that petitioner                          
            purchased the stock with the understanding that he would perform                          
            the restaurant's legal work.  Petitioners provided two checks                             
            drawn on petitioner's account that were written to "Annabelle's",                         
            one in the amount of $150 and a second in the amount of $2,000.                           
                  A deduction for a bad debt is limited to a bona fide debt,                          
            that is, debts that arise from a debtor-creditor relationship                             
            based upon a valid and enforceable obligation to pay a fixed or                           
            determinable sum of money.  Sec. 1.166-1(c), Income Tax Regs.                             
            Petitioners did not argue, and have failed to establish, that the                         




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