- 15 - provided him with the money to purchase the house. When he was asked how his grandmother managed to accumulate $50,220 in cash, Mr. Ras was unable to provide an answer. When he was asked who issued the checks for the remainder of the purchase price, Mr. Ras could not provide a definite answer, nor could he deny that Mr. Bacon provided him with some of the checks. When he was asked why he signed a $64,000 mortgage in favor of Mrs. Bacon if she had not lent him the money, Mr. Ras said that Mr. Bacon told him to sign and that he would sign anything that Mr. Bacon gave him. We do not find Mr. Ras’ explanation to be credible. On the basis of the facts, we find that petitioners provided Mr. Ras with $64,000 and that he in turn executed a mortgage on the house in the amount of $64,000. C. Real Estate Deposits Petitioners argue that respondent should reduce their unreported taxable income under the bank deposit analysis by $9,000 for 1988 and $4,000 for 1990. According to petitioners, they issued checks totaling $13,000 to make deposits on unconsummated real estate transactions. This resulted, according to petitioners, in the return of $13,000 of nontaxable funds that were either redeposited or cashed. Petitioners have not established that these transactions ever took place or that the amounts in question were returned toPage: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
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