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Generally, petitioner is obligated to show that respondent’s
determination is in error. There are exceptions to that rule,
one of which may concern the determination that there is
unreported income. Under the holdings of the Court of Appeals
for the Ninth Circuit (to which an appeal would normally lie for
petitioner), the Commissioner is required to make a threshold
evidentiary foundation to support a determination of unreported
income. See Weimerskirch v. Commissioner, 596 F.2d 358 (9th Cir.
1979), revg. 67 T.C. 672 (1977). Respondent has made a
sufficient showing to shift to petitioner the obligation to show
that respondent’s determination is in error, which petitioner has
failed to do. Wherefore, respondent’s determination of
unreported or overstated miscellaneous income items is sustained.
VIII. Itemized Deductions
A. Mortgage Interest
Respondent made determinations regarding petitioner’s
itemized deductions for mortgage interest for the years under
consideration. Respondent has conceded that petitioner is
entitled to mortgage interest deductions of $33,799, $21,308.24,
$36,816.24, and $35,558.04 for 1988, 1989, 1990, and 1991,
respectively. Petitioner appears to have contested the 1987
mortgage interest deduction for the Telegraph Avenue property.
In that regard, respondent conceded that petitioner is entitled
to $24,824.63 of mortgage interest attributable to the Telegraph
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