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We reemphasize that respondent’s determination of a deficiency is
presumed correct, and it is petitioner who bears the burden of
proving that determination incorrect. Since petitioner bears the
burden of proof, he must also bear the onus of failed
recollection and the lack of documentary evidence. Further,
petitioner has created the situation in which he now finds
himself by failing to document properly his various real estate
transactions, in failing to maintain and keep adequate records,
and by unnecessarily complicating those transactions. We hold
that petitioner is responsible for 100 percent of the gain
realized on the sale of Lot 23 in 1985.
4. Silver Lake (OS-01.4)
FINDINGS OF FACT
On September 30, 1975, petitioner, as trustee, purchased
property in Osceola County, Florida, which we refer to as “Silver
Lake” (OS-01.4). In November 1978, petitioner, as trustee, sold
Silver Lake to L.R. Donnell, Jr., as trustee, for $70,000. On
February 5, 1979, Mr. Donnell, as trustee, conveyed Silver Lake
to Mr. Miles, as trustee, for no consideration.
On October 31, 1980, Mr. Miles, as trustee, sold Silver Lake
to Don Prewitt, as trustee, for $220,600. Mr. Prewitt issued a
purchase money mortgage for $180,000 to Mr. Miles and paid the
balance. Mr. Miles, as trustee, received the following principal
and interest payments in 1985, 1986, and 1987:
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