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check was not a loan from Don Henry and Sylvia Cohn. He argues
that the promissory note that petitioner relies upon shows Don
Henry and Sylvia Cohn as the obligees, not Orlando Land &
Investment Co., and that the check from that entity was not a
check from those obligees.
Since respondent has conceded the source of the formerly
unidentified deposit, we are concerned only with whether that was
a nontaxable source. We note that respondent did not determine
an increased deficiency based on the $90,000 check, although his
failure to do so is not conclusive, see supra. At trial,
petitioner testified that the deposit was attributable to
proceeds lent to him by Don Henry. Respondent concedes that Don
Henry was the president of Orlando Land & Investment Co., and we
have found that as fact. Although this fact alone does not
establish a connection between the check of $90,000 and the
promissory note of $90,000, we believe the evidence as a whole
shows a sufficient connection beyond mere coincidence. We hold
that the deposit of $67,740 is not taxable as income to
petitioner.
4. Deposit on July 8, 1988, of $140,000
FINDINGS OF FACT
On July 8, 1988, $140,000 was deposited into Mr. Miles’s law
firm’s trust account for petitioner. Ledger card No. 70269 for
that trust account is entitled “Walter Medlin”, “Prather Ranch
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