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husband, and Delwin Houser. Rebecca Adair was uncooperative and
answered as follows: “I would not”. “No, sir”. “It’s up to
you, sir”, and “–-for me, I’m just-–I won’t offer any
suggestions. I leave it completely up to you, so--.” On the
little evidence before us, we conclude that one-half of the
taxable income from the roofing business is taxable to
petitioners.
For each year, petitioners’ income that was reported on
their joint Federal income tax returns and business expenses that
were allowed that relate to the roofing business are to be
credited against the above income and expense figures in
computing petitioners’ tax liability. In the related case of
Houser v. Commissioner, T.C. Memo. 2000-111, docket Nos. 13202-97
and 20120-97, also filed this date, we charge Delwin Houser with
the other half of the income relating to deposits into the
checking account.
For each year in issue, our calculations of petitioners’
taxable income are set forth below. The bank deposits that are
identified as gross receipts of the roofing business are
multiplied by the average net profit margin for roofing
contractors, producing a partial taxable income figure for the
roofing business. Added to this partial net income figure are
the unidentified bank deposits to calculate total taxable income
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