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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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