- 45 - 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) $606,719Page: Previous 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Next
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