Frank de Bane and Kathleen Naber-de Bane - Page 6

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          identified petitioner as the proprietor of a business, one named            
          “G.F. de Ban´┐Ż Publishing” and the other “Grandfather Time Antique           
          Clocks”.  The checks were written for a variety of expenses,                
          including mortgage, telephone, water, waste, credit card,                   
          insurance, department of motor vehicles, and taxes.  Both                   
          accounts were used alternately for some of the same payees.  It             
          appears that these were used by petitioners as nothing more than            
          personal banking accounts.  Neither the existence of these                  
          accounts nor petitioner’s testimony establishes the existence of            
          any business.                                                               
               Even if the record established the existence of a trade or             
          business, it does not show that the deductions claimed were for             
          ordinary and necessary business expenses.  In addition to the               
          checks mentioned above, petitioners provided credit card                    
          statements to substantiate the expenses.  Notations were made               
          beside some of the charges, and petitioners, in preparation for             
          trial, summarized some of the charges and checks as belonging to            
          certain categories of expenses.  From the evidence before the               
          Court, it appears that, for the most part, petitioner simply                
          scoured the credit card statements and canceled checks in search            
          of expenses which could be matched to the amounts on the returns.           
          For example, with respect to the bad debt expenses of $15,                  
          petitioner testified that:  “I find when I was examining all of             
          the receipts that I have from the charge card, from the two                 

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