- 17 - to meet the cost of living of petitioner and his family. We conclude on this record that respondent's determination of unreported income of $30,492 is erroneous. We accordingly sustain respondent's determination of unreported income only to the extent of $20,902. In addition, since we have found that petitioner paid home mortgage interest of $6,242 in 1989, petitioner is entitled to a deduction in that amount, although respondent's allowance of the standard deduction in the notice of deficiency must be adjusted accordingly. Petitioner has not substantiated any other Schedule A deductions. 1990 The parties have stipulated that petitioner received nonemployee compensation of $1,035 from J&K Developers, Inc., in 1990. It has also been stipulated that petitioner operated the Crazy Horse Saloon "during 1990". Petitioner testified that he ceased operations on July 1, 1990. Other evidence in the record provides some support for this assertion.9 In a personal financial statement dated March 29, 1990, submitted to a bank to obtain a loan, petitioner represented that his annual income was 9 The parties have stipulated that the Crazy Horse property was sold in 1991 and have not stipulated that any operations were conducted in that year. The only liquor license granted to the Crazy Horse Saloon that is in evidence carries an expiration date of Apr. 30, 1990. No State tax returns for the business beyond 1989 are in evidence. The parties have stipulated that petitioner paid mortgage interest related to the Crazy Horse property of $4,360 in 1990, which is less than half the amount paid in each of the 2 preceding years.Page: 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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