Joseph C. Minneman - Page 16

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         Whiting v. Commissioner, T.C. Memo. 1975-38.                                 
              Moreover, we do not comprehend how petitioner could have had            
         an adjusted basis of $12,670 in “professional research”.  Any                
         costs that petitioner had incurred in producing such “research”              
         would have been expensed on a Schedule C and/or billed to his                
              Finally, we are not convinced that any of petitioner’s                  
         property was either stolen or damaged by water.  See Diaz v.                 
         Commissioner, 58 T.C. 560, 564 (1972) (distilling truth from the             
         testimony of witnesses, whose demeanor we observe and whose                  
         credibility we evaluate, is “the daily grist of judicial life”);             
         Kropp v. Commissioner, T.C. Memo. 2000-148 (“As a trier of fact,             
         it is our duty to listen to the testimony, observe the demeanor              
         of the witnesses, weigh the evidence, and determine what we                  
         believe.”).  Significantly, petitioner failed to introduce a copy            
         of the police report that he allegedly filed; likewise,                      
         petitioner failed to introduce a copy of the civil complaint that            
         he allegedly filed against the owner of the garage.   Documents              
         such as these should have been readily obtainable; indeed,                   
         petitioner implied that they were in his possession.                         
         Petitioner’s failure to introduce them justifies a negative                  
         inference.  See Recklitis v. Commissioner, 91 T.C. 874, 890                  
         (1988); Pollack v. Commissioner, 47 T.C. 92, 108 (1966), affd.               
         392 F.2d 409 (5th Cir. 1968); Wichita Terminal Elevator Co. v.               

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