Lee G. Gale - Page 46




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          statements reflected deposits of 12 J&J Trucking checks for                 
          $1,399.67 each, with one of those checks being returned for                 
          insufficient funds, for net deposits of $15,396.37.20  Petitioner           
          again has failed to meet his burden of proof on this issue, see             
          Rule 142(a)(1); we therefore hold that the J&J Trucking payments            
          of $15,396.37 are includable in petitioner’s gross income for               
          1994.                                                                       
               Also during 1994, petitioner deposited $187,574 into the               
          trust bank account, which included the J&J Trucking deposits                
          previously described.  Respondent conceded that $114,839 of those           
          deposits represented either nontaxable items or taxable amounts             
          that were already reported by petitioner on his 1994 fiduciary              
          return.  Accordingly, petitioner was left to account for $57,339            
          of unreported income.21                                                     
               Our review of the trust bank account statements and copies             
          of deposited checks indicates that the deposits at issue related            
          to petitioner’s real property or equipment rental activities.               
          However, petitioner has not provided any documentary evidence to            
          show that the amounts were nontaxable.  Because petitioner has              
          failed to meet his burden of proof on this issue, see Rule                  



               20 This is contrary to respondent’s assertion that J&J                 
          Trucking payments totaled $16,796 for 1994.                                 
               21 $187,574 deposits minus $114,839 concessions minus                  
          $15,396.37 J&J Trucking payments equals $57,339 (rounded).                  





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