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4. Whether Petitioner Had Capital Gains in 1994
First Fidelity Bank N.A. New Jersey issued four Forms 1099-
B, Proceeds From Broker and Barter Exchange Transactions, showing
that it paid petitioner capital gains of $1,162 from the sale of
stocks and bonds in 1994. Petitioner contends that the amounts
identified as capital gains in the Forms 1099-B were loans. We
disagree. Petitioner’s uncorroborated testimony that these
amounts were loans was unconvincing.
5. Whether $20,169 That Petitioner Deposited in a Bank
Account in 1997 Was Income to Petitioner
Respondent determined that petitioner’s cash deposit of
$20,169 to an FNB Bank of Maryland account in 1997 was income to
petitioner. Petitioner does not dispute that the $20,169 was
deposited in his bank account in 1997.
A bank deposit is prima facie evidence of income. Tokarski
v. Commissioner, 87 T.C. 74, 77 (1986). In O’Dwyer v.
Commissioner, 266 F.2d 575, 588 (4th Cir. 1959), affg. 28 T.C.
698 (1957), the U.S. Court of Appeals for the Fourth Circuit held
that the taxpayers had the burden of overcoming the presumption
of correctness that a bank deposit was unreported income. There
was no evidence in the record as to the source of the deposit,
and the Fourth Circuit found that the taxpayers failed to
overcome the presumption because they offered no evidence or
testimony about the deposit. Id. Thus, petitioner bears the
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