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Dade County.) In addition, we are mindful that petitioner listed
his debt to Mr. Garcia when he filed for bankruptcy protection in
November 1993.
We also accept petitioners' testimony that Mr. Garcia had a
good faith intent to collect the $271,836. Thus, we find a
"consensual recognition" by both petitioner and Mr. Garcia of an
obligation to repay. Cf. Moore v. United States, 412 F.2d 974,
978-980 (5th Cir. 1969).
In sum, we find as an ultimate fact that the $271,836 was a
bona fide loan from Mr. Garcia to petitioner in 1991.
Consequently, we hold that $271,836 of the amount of unreported
income ($295,315) determined by respondent is not includable in
petitioners' 1991 income.
To reflect the foregoing and concessions by the parties,
Decision will be
entered under Rule 155.
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