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the winter 1992 course into the account at World Savings.
Rather, he deposited the $30,000 into the Sanwa account and did
not transfer any money from Sanwa to World Savings.
Consequently, the $30,000 tuition from the winter 1992 guaranteed
course was not held in trust in the World Savings account.
Petitioner also continued to pay refunds to failing students from
the Sanwa account during 1990 and 1991. He did not withdraw
money from the account when students passed the bar examination
and, under his argument, he would have been entitled to the
tuition. In fact, petitioner did not make any withdrawals from
the World Savings account until 1994. Petitioner’s actions in
connection with the World Savings account and his treatment of
the tuition are entirely inconsistent with his claim that he held
the tuition payments in trust at World Savings. He did not place
the $30,000 of guaranteed tuition in an escrow or trust account.
Rather, he placed all of the tuition into the Sanwa account and
spent the tuition to pay operating expenses of the review
courses. We hold that petitioner had actual receipt of the money
upon deposit. Accordingly, petitioner must report the tuition as
income in 1991.
Petitioner contends that before 1990, he reported the
tuition from the guaranteed course as Schedule C gross receipts
in the year the tuition was paid by the students. Petitioner
maintains that in 1990, he opened a trust account at World
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