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The parties dispute the cumulative amount of petitioner’s
contributions and loans to WIS through the end of the taxable
year 1991. In computing petitioner’s basis in WIS for 1991,
respondent gave petitioner credit for contributions and loans
during 1990 in the total amount of $77,500. Petitioners bear the
burden of proving that petitioner’s investment in WIS exceeded
the amount determined by respondent. Rule 142(a).
The evidence indicates that in 1990, in addition to the
amounts allowed by respondent, petitioner contributed to WIS the
proceeds realized from the sale of personally owned vehicles to
PR&L. Of the five vehicles sold, one, the Ford Aerostar, was
owned in part by WIS. The record does not disclose the
respective ownership shares of WIS and petitioner in this
vehicle. We estimate petitioner’s share as one-half;
accordingly, petitioner is entitled to have one-half of the
proceeds from the sale of this vehicle applied to his basis in
WIS. See Cohan v. Commissioner, 39 F.2d 540 (2d Cir. 1930); Rudd
v. Commissioner, 79 T.C. 225, 236-238 (1982).
At trial, respondent’s counsel asserted that since the
income tax returns of WIS showed that the corporation had claimed
depreciation with respect to three of the five vehicles prior to
the sale, it was respondent’s position that WIS was the owner of
these three vehicles for tax purposes, regardless of who held
title. However, WIS’s tax returns were not introduced in
evidence, and petitioner’s testimony contradicted counsel’s
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