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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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