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The gains and losses in the three brokerage accounts were
allocated by respondent according to which person owned the
account. At trial, petitioner testified that he was the sole
owner of all three accounts and was entitled to all the claimed
losses. His testimony, however, was inconsistent with the
allegations in his petition alleging a joint venture with Mrs.
Corrigan on the accounts. To some extent, petitioner’s testimony
on this point was inconsistent. For example, he contradicted
himself as to whether the proceeds of sales in the account in
Mrs. Corrigan’s name were remitted to her. Petitioner did not
provide any corroborating testimony or evidence supporting his
claim that the account ownership, in substance, differed from the
form.
Accordingly, we sustain respondent’s allocations of the
capital gains and/or losses from the three accounts.
IV. Deduction of Payments Claimed as Brokerage Commission
Rebates
While employed as a stockbroker during 1987 and 1988,
petitioner was responsible for servicing Smith Barney customers,
including JLB Capital, a sole proprietorship owned by Bergman.
Petitioner earned $1,081,313 and $321,692 in commissions from
that activity during 1987 and 1988, respectively. Also for 1987
and 1988, petitioner claimed reductions in income for “rebates”
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