Linda Klyce - Page 26




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          Commissioner's determination.  See Alvarez v.Commissioner, T.C.             
          Memo. 1995-414.                                                             
               The parties stipulated that nontaxable deposits were made              
          into the shared bank account of Special Occasions and Special O.            
          Respondent conceded that the total dollar amounts of unexplained            
          bank deposits from the shared bank account should be reduced to             
          $610 and $1,362 for 1992 and 1993, respectively, and that these             
          amounts should be divided equally between Special Occasions and             
          Special O.                                                                  
               Petitioner presented no evidence to show that any other                
          unexplained bank deposits into the shared account were nontaxable           
          deposits.  Petitioner failed to introduce cash register receipts,           
          canceled checks, credit card statements, or bank deposit receipts           
          to substantiate the source of unexplained bank deposits.                    
          Moreover, petitioner failed to convince the Court of any                    
          impropriety concerning respondent's equal division of taxable               
          bank deposits between Special Occasions and Special O.  As noted            
          earlier, the funds of Special Occasions and Special O were                  
          commingled.  Consequently, on this record, the Court sustains the           
          amount of income determined (after concessions) by respondent in            
          connection with Special Occasions and Special O for 1992 and                
          1993.                                                                       
               The fourth issue is whether petitioner is entitled to a                
          section 179 expense deduction for 1993 in connection with Special           





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