- 5 - petitioner concerning his expenditures. As a result of these revisions, the amounts in controversy are lower than those reflected in respondent’s original adjustments.2 The revised computations set forth below are not disputed: Application of Funds 1989 1990 Increase in bank account balance $4,928 - 0 - Business equipment purchased per return 4,583 $900 Real estate purchased 61,000 Loan repaid to Dewey Cowart 11,000 31,000 Personal living expenses 4,200 5,100 Taxes and insurance withholdings 2,967 1,168 Expenses of estate of which petitioner was executor 1,422 1,422 Total funds applied 29,100 100,590 Sources of Funds Adj. gross income per return (138) 624 Depreciation per return 5,416 3,942 Loan received from Dewey Cowart -0- 31,000 Decrease in bank account balance -0- 4,913 Gifts from Mr. Judy -0- 1,750 Total available funds reported 5,278 42,229 Unreported farm income specifically identified 16,383 21,698 Total funds available from identified sources 21,661 63,927 Residual amounts in controversy 7,439 36,663 This case was tried on November 6, 1995, in Columbia, South Carolina. One of the witnesses whom respondent subpoenaed was 2 The revisions relate to two items: Respondent conceded that a $20,500 expenditure for the purchase of a tractor trailer occurred in 1988 rather than 1989, and that petitioner’s payments for child care in 1990 were $2,700 less than the revenue agent had supposed.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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