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we agree with petitioners and reject respondent’s proposal to
include $4,718 truck payments. For the same reasons we express
as to 1994, we agree with respondent and reject petitioners’
proposal to reduce the $1,900 groceries to $600. We conclude
that the foregoing constitutes clear and convincing evidence of
the correctness of the 1995 adjustment (supra table 8) on account
of personal living expenditures by cash.
(8) Bank Balances
The parties have stipulated the opening and closing listed
accounts balance totals shown in tables 7 and 8.
(9) Nontaxable Cash
As noted supra (items (6) and (7)), cash expenditures (i.e.,
expenditures made by cash that did not go through the bank
accounts) are added to bank deposits in order to determine the
amount of potentially taxable receipts that must be accounted
for. One way to account for cash expenditures as not having a
taxable source in that taxable year is to determine the amount of
cash petitioners had available to them that came from nontaxable
sources. In the instant cases, respondent agrees that
petitioners had a substantial amount of cash available to them
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