Jerry J. and Susan N. LeBouef - Page 17




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          prepared both the partnership return and petitioners’ individual            
          return, making it particularly difficult to construe either as              
          corroboration for the other.                                                
               Petitioners also point out that the combined financial                 
          report for LeBouef Company and LeBouef Company, Inc., contains an           
          unaudited financial statement for Toro Leasing reflecting a line            
          item of $104,747 for “Loss on disposal of fixed assets”.                    
          However, such statement again is merely a representation by                 
          management and falls far short of proving that specific business            
          property was disposed of at a loss correlating to that shown on             
          the Schedule K-1 and petitioners’ Form 4797.                                
               We simply lack any documentary evidence, such as receipts,             
          bills of sale, or partnership books and records, to affirmatively           
          establish that the items of business property listed on the                 
          partnership return were in fact acquired and sold at the amounts            
          claimed.  Hence, petitioners have failed to establish even that             
          the purported loss was sustained by Toro Leasing.  We hold that             
          petitioners are not entitled to deduct the $19,791 reported on              
          their Form 4797.                                                            
          V.  Section 6651(a)(1) Addition to Tax                                      
               Section 6651(a)(1) imposes an addition to tax for                      
          delinquency in filing returns and provides in relevant part as              
          follows:                                                                    








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