-5-
Petitioner’s uncontroverted testimony is credible, and we
find that he received rental income in 1994, 1995, 1996, and 1997
in the amounts of $2,400, $2,400, $3,000, and $3,000,
respectively, and not the $5,000 amount for each year as
determined in the notice of deficiency.
Section 212(2) allows as a deduction all ordinary and
necessary expenses paid during the year for the management,
conservation, or maintenance of property held for the production
of income. A taxpayer is required to maintain records sufficient
to establish the amount of his income and deductions. Sec. 6001;
sec. 1.6001-1(a), (e), Income Tax Regs.
At the conclusion of the trial, the Court held the record
open for the receipt of evidence substantiating expenses relating
to the rental property because petitioner failed to present any
documentation at trial. The parties filed a supplemental
stipulation of facts in which they stipulated that petitioner
paid the following amounts for mortgage interest:
Taxable Year
1994 1995 1996 1997
Household Bank, FSB $4,103.39 $4,193.91 $4,330.28 -0-
U.S. Dept. of HUD 5,983.39 6,444.88 -0- -0-
Total 10,086.78 10,638.79 4,330.28 -0-
Based on the supplemental stipulation of facts, petitioner
is allowed deductions for mortgage interest in these amounts for
the respective years.
Based on the documentary evidence, attached as exhibits to
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