Robert Griffin and Julia Griffin - Page 10

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          (assuming that the opinion of the Court of Appeals does not                 
          foreclose our drawing such inferences) are insufficient to                  
          overcome petitioners’ evidence, viewed in the light of the degree           
          of credibility that the Court of Appeals has assigned to it.                
               For example, on remand, respondent places considerable                 
          reliance on the fact that petitioners reported the tax payments             
          in question on Schedules E as S corporation expenses relating to            
          misidentified real properties, rather than on Schedules C as                
          expenses of a business conducted by petitioners in their                    
          individual capacity.  Ultimately, however, whatever adverse                 
          inferences we might draw from such facts appear to be overcome by           
          what the Court of Appeals believed to be credible testimony by              
          Mr. Griffin that the tax payments in question were made with                
          respect to a separate trade or business in which Mr. Griffin was            
          individually engaged.                                                       
               Likewise, the remaining evidence in the record, consisting             
          largely of the stipulated facts and the joint exhibits, does not            
          directly establish or refute petitioners’ allegation that they              
          were individually engaged in a separate trade or business apart             
          from their investments in S corporations and partnerships.  Any             
          inferences that we might draw from this evidence (or lack                   
          thereof) would not overcome Mr. Griffin’s testimony in light of             
          the degree of credibility assigned to it by the Court of Appeals.           
               Giving effect to the Court of Appeals’ conclusion that Mr.             
          Griffin’s testimony was credible and sufficient to place the                




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