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attributable in whole or part to their unreported gambling
winnings.
Petitioners’ testimony on this score was less than
compelling. On direct examination, Paula was asked the leading
question whether “you feel like your [1996] losses exceeded your
winnings”. In response, Paula testified, “I think so. I don’t
have–-we didn’t have any money. * * * I mean, it just–-I mean,
nothing really changed. We had money in and out, in and out of–-
it was like we had gambling money all year. It would go through
our fingers.” Surely every taxpayer can attest that income has a
way of slipping through the fingers and leaving one feeling none
the richer for it. This dolorous fact of life, however, affords
no basis for tax relief in the ordinary situation, much less in
the situation here involving unreported gambling winnings.
In sum, we are unconvinced that petitioners’ gambling losses
exceeded the unreported gross gambling income not reflected in
the notice of deficiency. The record provides no satisfactory
basis for estimating petitioners’ gambling losses in excess of
the amount we have allowed as a downward adjustment and the
amount conceded by respondent. Consequently, we do not apply the
rule of Cohan v. Commissioner, supra, to estimate the amount of
losses. See Donovan v. Commissioner, 359 F.2d 64 (1st Cir.
1966), affg. T.C. Memo. 1965-247; Stein v. Commissioner, 322 F.2d
78, 83 (5th Cir. 1963), affg. T.C. Memo. 1962-19; Schooler v.
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