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only one-half of the unexplained deposits constitutes an item of
gross income to Michael Friscia. See Van Eck v. Commissioner,
T.C. Memo. 1995-570. Accordingly, $2,785 of the deposits into
these accounts represents income to Michael Friscia in 1995.
2. The 533 Account
Michael Friscia deposited $20,760 into the 533 account in
1995. Michael Friscia concedes that this entire amount represents
wages he earned from Friscia Construction in 1995 and is
reportable by him as income.
3. The 522 Account
Michael Friscia deposited $52,199 into the 522 account in
1995. Respondent concedes that Michael Friscia made $17,949 in
nontaxable transfers into this account. Michael Friscia has
established that the following additional deposits into the 522
account are not taxable to him: (i) $12,692 in wages earned by
Michelle Friscia, and (ii) $3,000 in nontaxable proceeds from the
sale of a truck inherited from his father. Michael Friscia
concedes that he deposited $18,345 in proceeds from his Mik Mic
business and wages from Friscia Corporation into the account.
One-half of the remaining $213 (or $107) in unexplained deposits
is taxable to Michael Friscia because of his joint interest in the
account. See id. Accordingly, $18,452 of the deposits into the
522 account represents income to Michael Friscia for 1995.
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