John Weller Wood, Jr., and Magdalena Frances Wood - Page 19

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          115 (1933).  Petitioner has not established that he paid more for           
          kitchen remodeling than the $20,000 respondent allowed.  He                 
          provided two documents from Frank and Sal Fricano for material              
          and labor for “tiling kitchen & foyer”.10  Both documents provide           
          for tiling an area of 305 square feet.  The documents could be              
          estimates rather than invoices, and they do not establish that              
          the work was completed or that the stated amounts were paid.                
               Petitioner asserts that he spent several thousand dollars to           
          add fireplaces to the New Jersey house.  He did not provide any             
          checks or receipts to substantiate the cost of the fireplaces.              
               We find that petitioner has not established that the capital           
          improvements he and Mrs. Wood made to the New Jersey house                  
          totaled more than $153,435.  We sustain respondent’s                        
          determination on this issue.                                                
          III. Net Profits From Petitioner’s Consulting Business                      
               For the years at issue, petitioner reported the following on           
          the consulting business Schedules C:                                        
                                               1994       1995       1996             
          Income                          $75,657    $53,804    $60,072               
          Expenses                         (51,879)   (27,527)   (42,829)             
          Expense for business use of         (6,025)   (11,362)    (4,674)           
          Net profit                       17,753   14,915    12,569                  



               10One is clearly dated “June 5 - 84”.  The second document             
          is also dated June 5 but it appears the “84” has been changed to            
          “85”.                                                                       




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