- 15 - property and a basis of $55,550. Petitioner has provided no substantiation of the claimed sales expenses. With respect to the claimed basis, we observe that respondent offered into evidence two personal financial statements dated December 31, 1987, and February 16, 1989, that petitioner submitted to a bank to obtain loans. In both statements, petitioner represented that the property at the 11th Street address was acquired in 1983 at a cost of $57,000. We find sufficient corroboration that petitioner had a basis in the property of at least $55,500. We accordingly find that his net gain on the sale of the 11th Street property was $13,950 ($69,500 gross sales price less $55,550 basis). We therefore sustain respondent's determination of income from real estate sales in the amount of $13,950 only. It is stipulated that petitioner continued to operate the Crazy Horse Saloon in 1989. With respect to his income from this business, petitioner filed returns for retailers' occupation and related taxes for the Crazy Horse Saloon with the Illinois Department of Revenue, in which he reported total receipts for 1989 of $30,591. This figure was also represented by petitioner as his gross receipts from the Crazy Horse Saloon on Schedule C of the 1989 Federal income tax return previously noted. Both representations of gross receipts constitute admissions by petitioner. Petitioner listed various deductions on the Schedule C in computing net profit from the Crazy Horse Saloon, but has provided no substantiation for any of them except mortgagePage: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
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