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petitioner has failed to satisfy his burden of establishing that
the $15,000 cashier’s check issued by Home Savings of America and
payable to him represented a business loan from Mr. Reingatch.
Alleged Reimbursements
Petitioner contends that during 1993 $27,474 of the deposits
into petitioner’s accounts, including payments against the
balances due on petitioner’s credit accounts and cash received in
connection with certain of those deposits, represented reimburse-
ments from MZ Trading for certain expenses that he had paid on
its behalf. According to petitioner, $25,362 of the $27,474 at
issue related to 15 checks from MZ Trading,54 and the balance of
that total amount at issue ($2,112) related to five checks from
Mr. Guterman.55
53(...continued)
Reingatch for purposes other than as repayments of a loan. In
this connection, petitioner failed to offer into evidence any
credible documentary evidence, such as a promissory note, showing
that the $15,000 cashier’s check issued by Home Savings of
America and payable to petitioner represented a business loan
from Mr. Reingatch. We infer from petitioner’s failure to
proffer any such evidence that any such documentary evidence does
not exist and that, if it does exist, it would not have substan-
tiated petitioner’s position regarding that check.
54With respect to the 15 checks from MZ Trading totaling
$25,362, petitioner contends in the alternative that those checks
represented nontaxable returns of his capital in MZ Trading. On
the instant record, we find that petitioner has failed to carry
his burden of showing that MZ Trading issued those checks to him
as returns of his capital therein. Nor has petitioner estab-
lished on the record before us his adjusted basis in his partner-
ship interest in MZ Trading immediately before he received each
of those checks. See sec. 731(a)(1).
55Petitioner failed to offer into evidence any credible
documentary evidence supporting his position with respect to the
(continued...)
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