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transferred to custodial control before yearend 1988. We
therefore hold that petitioner does not have unreported dividend
income of $211 in connection with his control of the Chung No. 3
account.
Petitioner contends further, however, for the first time on
brief that respondent failed to give him the benefit of all of
the incidents of ownership of the brokerage accounts asserted to
be under his dominion and control. According to petitioner,
these brokerage accounts in large part purchased stocks on
margin; and they incurred margin interest costs of $67,193, which
was deducted directly from the brokerage accounts and for which
respondent did not give petitioner credit. Petitioner
additionally alleges that the brokerage accounts incurred capital
losses of $15,764 for which respondent did not give petitioner
credit. Petitioner contends that if he must include the
dividends in his income, then he should also be allowed to claim
the capital losses of $15,764 and margin interest deductions of
$67,193. Respondent counters that petitioner’s untimely claim of
additional losses and deductions prejudices respondent because he
is effectively precluded from attempting to show that petitioner
had additional unreported gains from other personal brokerage
accounts into which corporate funds were diverted but which were
not included in the deficiencies asserted.
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