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Items of Income for 1988
Description Amount
Conceded Bank Deposits $182,338
Funds Relating to $275,000 TexGuarantyBk Loan 17,281
Bank Deposits Relating to Legal fees 12,000
Miscellaneous Bank Deposits 2,950
Cash Withdrawals from the Club 4,699
Reported Flow-through Income 32,526
Reported Value of Assets of 2618 Inc 35,000
Value of Stock of 2618 Inc 570,000
Total $856,794
Deductions Allowed for 1988
Description Amount
Allowed Business Deductions:
Business Interest $ 32,598
Depreciation/Lakeway 20,770
Miscellaneous 161,234
Allowed Itemized Deductions:
Mortgage Interest 27,397
Taxes 5,076
Nonbusiness Bad Debt Relating to Guaranty 3,000
Total $250,075
Based on the above figures, the schedule below compares the
total income, deductions, and losses reported on petitioner’s Federal
income tax returns for 1987 and 1988 with the corrected amounts
therefor based on our findings and reflects large understatements of
taxable income and large underpayments of tax on petitioner's 1987
and 1988 Federal income tax returns as filed:
1987 1988
Reported Corrected Reported Corrected
Total Income $241,692 $291,243 $224,303 $856,794
Deductions 247,968 107,485 232,646 250,075
Income (Loss) $ (6,276) $183,758 $ (8,343) $606,719
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