Fatai O. and Mary King - Page 10




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               Mr. King testified that he used the Hyundai to pick up                 
          newspapers but argues on brief9 that he sold only Pennsylvania              
          State lottery tickets at his newsstand.10  Additionally, Mr. King           
          could not recall whether he owned one or two automobiles in 1994            
          but testified that his family never used the Hyundai to visit the           
          doctor, go to church, or even to pick up groceries.  Finally, Mr.           
          King testified that the Hyundai was used to commute to work                 
          daily.  We sustain respondent's disallowance, since petitioners             
          did not meet their burden of proof by providing either adequate             
          records or a detailed statement corroborated by sufficient                  
          evidence to substantiate their deduction.                                   
               The fourth deduction concerns claimed repair and maintenance           
          expenses in the amount of $4,944.  To document these repair and             
          maintenance expenditures, Mr. King presented three invoices with            
          an aggregate value of $5,950.  However, petitioners claimed only            
          a $4,944 deduction and offered no explanation for the variance.             
          One of the invoices, a $4,500 invoice for concrete work, was not            
          admitted into evidence because petitioners failed to provide it             
          to respondent before trial, in accordance with this Court's                 

               9"The petitioners sells [sic] only Pennsylvania Lottery                
          [tickets] at the Newsstands.  No candy, cigarettes or Newspapers            
          were sold at the Newsstands."                                               
               10Petitioners' amended return reported that Schedule C                 
          income was entirely from lottery commissions, while their                   
          original return reported the source of Schedule C income from               
          "Newsstand - selling cigarettes, lottery [tickets], newspapers."            





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