- 15 -
Petitioner produced an illegible copy of the $2,200 check at
trial. Mr. Bogue testified at trial that he returned only
$900 to $1,000 to petitioner in exchange for the automobile.
Petitioner testified that the car had a $7,000 value, while
Mr. Bogue testified that the car had a $2,000 book value. We are
not persuaded that petitioner has met his burden of proof.
Accordingly, we sustain respondent's determination as to the
$2,200 deposit in 1987.
Lastly, petitioner alleges that a deposit of $4,348 should
not be included in his 1984 income because it is "from funds
previously acquired and retained by Petitioner". There is no
evidence to substantiate that claim, and accordingly we find that
the $4,348 deposit is includable in his 1984 income.
We thus hold that all the disputed deposits were taxable
income.3 Accordingly, petitioner must include all of the
contested deposits in his income for the years in issue.
B. Addition to Tax for Fraud
3 In so holding, we note that petitioner also alleges that
he incurred a $15,523 casualty loss for 1984 because he forwarded
that amount to Lewco Securities, which claimed to be an agent of
Lehman Brothers Kuhn Loeb, Inc. (Lehman Brothers), but Lehman
Brothers never received the funds or established an account for
him. In support of his claim, petitioner has introduced only his
uncorroborated testimony and evidence that his account balance
with Lewco Securities fell below the minimum margin maintenance
requirements. Petitioner never identified the names or positions
of the individuals with whom he dealt at Lewco Securities. We do
not allow him a deduction for a casualty loss.
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NextLast modified: May 25, 2011