Eryck C. Aston - Page 4

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          proof.3                                                                     
               A.   Income From Kmart                                                 
               Section 61 defines gross income as all income from whatever            
          source derived.  Gross income includes compensation for services.           
          Sec. 61(a)(1).                                                              
               In 1999, petitioner received $21,078.12 in wages from Kmart.           
          In motions, at trial, and on brief, petitioner advanced shopworn            
          arguments characteristic of tax protester rhetoric that has been            
          universally rejected by this and other courts.  Wilcox v.                   
          Commissioner, 848 F.2d 1007 (9th Cir. 1988), affg. T.C. Memo.               
          1987-225; Carter v. Commissioner, 784 F.2d 1006, 1009 (9th Cir.             
          1986).  We shall not painstakingly address petitioner’s                     
          assertions “with somber reasoning and copious citation of                   
          precedent; to do so might suggest that these arguments have some            
          colorable merit.”  Crain v. Commissioner, 737 F.2d 1417, 1417               
          (5th Cir. 1984).                                                            
               B.   Losses                                                            
               Section 165(a) provides that there shall be allowed as a               
          deduction any loss sustained during the taxable year and not                
          compensated by insurance or otherwise.  Section 165(c) limits the           
          loss deduction for individuals to losses incurred in a trade or             
          business, losses incurred in a transaction entered into for                 
          profit, and certain casualty losses.  Petitioner argues that he             

               3  We note, however, that our resolution of this issue does            
          not depend on which party bears the burden of proof.                        




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