Thomas C. Sandoval, Jr. - Page 5




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          II. Allied Electric Business Deductions                                     
               A.   Net Operating Loss Carryforwards                                  
               Petitioner contends, but failed to establish, that his 1994            
          income is offset by net operating losses.  See Jones v.                     
          Commissioner, 25 T.C. 1100, 1104 (1956)(holding that a taxpayer             
          must prove the amount of the net operating loss carryforward                
          deductions claimed and that his gross income in other years did             
          not offset those losses), revd. and remanded on other grounds 259           
          F.2d 300 (5th Cir. 1958).  Petitioner’s documentary evidence                
          consisted of his tax returns and a worksheet with figures                   
          differing from those on the returns.  See Wilkinson v.                      
          Commissioner, 71 T.C. 633, 639 (1979)(holding that tax returns              
          alone do not establish a taxpayer’s entitlement to claimed                  
          deductions).  Respondent concedes petitioner had eligible net               
          operating losses of $15,546, $3,577, $35,791, and $9,573 in 1982,           
          1989, 1991, and 1992, respectively.  These losses were absorbed             
          by income in carryback and carryover years prior to 1994.  See              
          sec. 172(b)(stating that net operating losses must be carried               
          back 3 years and the remaining portion carried forward 15 years).           
          Accordingly, petitioner does not have a net operating loss                  
          carryforward in 1994.                                                       
               B.   Additional Business Depreciation                                  
               Petitioner failed to establish that the Lincoln Town Car was           
          used for business purposes.  We conclude, however, that the                 






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