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this record that respondent's determination that petitioner had
unreported income of $29,147 is erroneous. We accordingly
sustain respondent's determination of such unreported income only
to the extent of $15,748; this is in addition to the unreported
wages of $14,239, and the unreported interest income of $13, to
which the parties have stipulated. In addition, since we have
found that petitioner paid home mortgage interest of $6,285,7
petitioner is entitled to a deduction in that amount, although
respondent's allowance of the standard deduction in the notice
must be adjusted accordingly. Petitioner has not substantiated
any other Schedule A deductions.
1989
The parties have stipulated that petitioner received wages
of $1,944 in 1989.
The parties have further stipulated that petitioner sold
real property located at the 11th Street address in 1989 for a
gross sales price of $69,500.8 In connection with the trial of
this case, petitioner completed and signed a 1989 Federal income
tax return on which he claimed certain expenses of sale of this
7 We make no provision for the $9,698 in mortgage interest
that the parties stipulated petitioner paid with respect to the
Crazy Horse property because petitioner admitted to a "net
profit" estimate from the Crazy Horse Saloon, which would have
been net of mortgage interest expense.
8 Although the notice of deficiency for 1989 determined
income from real estate sales in the amount of $139,000,
respondent now concedes that the gross sales price received by
petitioner was $69,500 rather than $139,000.
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