Bradley M. Cohen and Kathy A. Cohen - Page 11




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          appear to claim that this amount should be considered as                    
          additional nontaxable income because it was transferred from                
          another account under petitioners’ control.  However, petitioners           
          stipulated prior to trial to the amount of the deposits that                
          represented nontaxable amounts, and we are not persuaded that               
          respondent did not already consider sales proceeds in determining           
          nontaxable transfers, in part because the amounts stipulated as             
          nontaxable exceeded the sales proceeds.  Petitioners failed to              
          identify or prove specific deposits made into their bank accounts           
          from their brokerage account that coincide in time or amount to             
          the sales of capital assets.  Petitioners are raising a belated             
          argument based on speculation that lacks credibility.                       
               Petitioners dispute the remaining $120,000, claiming that              
          this amount represented a loan from petitioner’s deceased father.           
          Prior to trial, during examination of their return and in                   
          response to discovery requests, petitioners did not mention any             
          loan from petitioner’s father.  At trial, petitioner testified              
          that he received a loan from his father in 1996 of $140,000 that            
          was paid to him over time, in various increments, in both cash              
          and wire transfers.  Petitioner stated that about $50,000 or                
          $60,000 was lent to him in cash and was deposited in various bank           
          accounts maintained by petitioners.  Petitioner stated that he              
          repaid about $6,000 of the loan prior to his father’s death.                
          Petitioners claim in their reply brief that $120,000 of the loan            






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