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the Friscias made $24,449 in nontaxable transfers into this
account.3
The record reflects that the Friscias made additional
nontaxable deposits into the 522 account of $4,889, which were
Amway sales proceeds received by the Friscias in 1993. These
proceeds are properly allocable to the Friscias’ 1993 return.
See Lavery v. Commissioner, 158 F.2d 859 (7th Cir. 1946)
(payments made by check to a cash basis taxpayer are includable
in income in the year the check is received, not the year it is
deposited), affg. 5 T.C. 1283 (1945).
The Friscias also claim that $4,002 of the payments received
from Friscia Construction in 1994 and deposited into the 522
account were reimbursements for expenditures paid by the Friscias
on behalf of the company. These include a $1,500 reimbursement
for a Christmas party and a $2,502 reimbursement for a computer.
The Friscias have failed to establish that these expenses were
incurred on the company’s behalf. Thus, these amounts are
includable in the Friscias’ income for 1994.
Accordingly, $24,178 of the deposits in the 522 account
represents income taxable to the Friscias in 1994.
3Petitioners claim an additional nontaxable transfer in the
amount of $1,325 from “account 6930". This contention is
unsupported as there is no document in the record reflecting an
account 6930.
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