Michael and Kazuko Yang - Page 9




                                        - 9 -                                         
               Section 61(a) provides that gross income includes all income           
          from whatever source derived, unless otherwise specifically                 
          excluded.  Section 102(a) excludes the value of property acquired           
          by gift from gross income.  For income tax purposes, a gift must            
          proceed from a detached and disinterested generosity, motivated             
          by affection, respect, admiration, charity, or the like.  See               
          Duberstein v. Commissioner, 363 U.S. 278, 285 (1960).                       
               Petitioners rely on their own testimony and that of Mr.                
          Yang’s brother, Fang Long Yang.  Mr. Yang testified that Fang               
          Long Yang opened the Bank of Taiwan account and controlled it for           
          Mr. Yang by making deposits and wire transferring money to the              
          Seafirst Bank account.  Fang Long Yang testified that he did not            
          personally set up the Bank of Taiwan account and that he did not            
          know the details surrounding the wire transfers to Mr. Yang.  Mr.           
          Yang and Fang Long Yang claim that their father made equal gifts            
          to his four sons during 1995 and 1996.  The alleged gifts to Mr.            
          Yang in 1995 and 1996 were substantial ($112,077 and $224,340),             
          yet Fang Long Yang could not remember, or even estimate, the                
          amounts he received or the amounts petitioners received.  We are            
          not required to accept petitioners’ or Fang Long Yang’s self-               
          serving testimony, where it is improbable, unreasonable, or                 
          questionable.  See Tokarski v. Commissioner, supra at 77; Clower            
          v. Commissioner, T.C. Memo. 1990-74.  In light of the evidence,             








Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011