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clear and convincing evidence that petitioner owned at least a
50-percent interest in the East Lake Vista properties at the time
of their sales in 1986, including petitioner’s financial
statements, a guaranty that petitioner entered into with the
buyer at the time of the sale of the 31.5 acres, and the ledger
cards that Mr. Miles’s law firm maintained with respect to East
Lake Vista. We hold that respondent has proven by clear and
convincing evidence that petitioner realized half of the gain
from the sales of 31 and 31.5 acres from East Lake Vista in 1986.
Respondent has proven by clear and convincing evidence the
following items of income for 1986:
Item Amount
Income conceded or stipulated $249,100
Disputed income conceded on brief 39,790
Gain from sale of Grissom Parcels 12,042
Gain from exchange of Arrowhead Lakes
Subdivision lots 60,706
Gain from sales in East Lake Vista 92,502
Total 454,140
Respondent allowed the following deductions for 1986:
Type of deduction Amount
Schedule C expenses $298,656
Nonitemized contributions 48
Exemptions 2,160
Total 300,864
Respondent has proven by clear and convincing evidence that
petitioner received taxable income of $153,27684 in 1986.
84Total income proven of $454,140 less allowable deductions
of $300,864 equals $153,276 in taxable income.
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