Wilbur Kenneth Griesmer - Page 9

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          pyrite.  See sec. 1.183-2(b)(2), Income Tax Regs.  In addition,              
          petitioner generated significant tax benefits by offsetting                  
          losses from his meteorite and pyrite collection activity against             
          his income from interest, dividends, and other sources and                   
          thereby reported no Federal income tax liability.  See sec.                  
          1.183-2(b)(8), Income Tax Regs.  All of these factors favor                  
          respondent's position that petitioner's activity was not engaged             
          in with the requisite profit objective.                                      
               In addition to concluding that petitioner engaged in his                
          meteorite and pyrite collection activity without the requisite               
          profit objective, we agree with respondent that petitioner failed            
          to substantiate the expenses claimed on his Schedules C.                     
          Taxpayers are required to prove their entitlement to any                     
          deduction claimed, including the fact of payment.  See Rule                  
          142(a); INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992);               
          Welch v. Helvering, 290 U.S. 111, 115 (1933); Hradesky v.                    
          Commissioner, 65 T.C. 87, 90 (1975), affd. per curiam 540 F.2d               
          821 (5th Cir. 1976).  Petitioner would have us believe that he               
          paid $83,994 in 1995 and $64,035 in 1996 as "salvage from                    
          salvagers".9   However, petitioner's testimony was bizarre if not            

          9  In testimony before the Court in his case involving the                   
          taxable years 1992, 1993, and 1994, petitioner described the                 
          "salvagers" as junior high school students who sold minerals to              
          him after he had disclosed the minerals' location to the                     

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