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number “1-23” listed on the deposit statement to the bank tracing
number “1-23” on the Dean Witter check.
Respondent determined that the deposit of $140,000 was
taxable as income to petitioner for 1988.
OPINION
Petitioner argues that the deposit on July 8, 1988, of
$140,000, was traceable to a loan from Richard Margolis, that the
loan proceeds were needed to make a mortgage payment on the
Partin property, and that “The loan was secured by being
structured as a sale and option to buy back from Margolis rather
than a mortgage to Margolis.” Respondent agrees that $97,893.78
was transferred from the Medlin/Prather Ranch ledger card to the
Medlin/Partin ledger card and that checks were written for the
Medlin/Partin property on that same date; however, respondent
disagrees that the deposit for $140,000 and the subsequent
transfers establish that a loan was made. We agree with
respondent.
We find that petitioner has established that the source of
the $140,000 deposit was the Dean Witter check of $140,000. That
check was dated July 7, 1988, the day before the unidentified
deposit to the Medlin/Prather Ranch Property card. Ms. Goodman
testified that she always used the bank tracing number for checks
when making deposits. As such, she was able to match the bank
tracing number on the Dean Witter check to the bank tracing
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