- 8 - States, 348 U.S. 121 (1954). The reconstruction of income must be reasonable in light of all of the surrounding facts and circumstances. Giddio v. Commissioner, 54 T.C. 1530, 1533 (1970). For the taxable years 1989 through 1992, we find that petitioner was not engaged in any income-producing activity. Respondent’s reliance upon an answer to an interrogatory filed in a lawsuit (see supra note 4) is misplaced. While petitioner may have identified himself in the answer to an interrogatory as a tax management consultant, calling oneself that does not necessarily indicate that he had in fact engaged in such activity. We also note that the actual interrogatory that petitioner answered was not presented to the Court, and thus we are unaware of the full context of petitioner’s answer. On the other hand, petitioner has satisfactorily established that he was not engaged in income-producing activity during 1989 through 1992. We find that during that time petitioner was recovering from serious gunshot wounds, attending university, and/or pursuing his legal remedies. Petitioner received nontaxable income from various agencies of the State of California which he used to support himself.5 Accordingly, for 5 Respondent does not contest the nontaxability of those proceeds.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
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