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portion of the commissions earned by Jondahl Insurance between
May and November 1990. This amount plus the checks issued by Mr.
Ihry (totaling $14,962) equal $25,000. We conclude that capital
gain of $14,962 and ordinary income from commissions of $10,038
should be included in petitioner’s 1990 income.
Respondent has introduced Farmer’s Mutual policy registers
for 1990 and 1991 showing that Jondahl Insurance earned insurance
commissions of $12,881.70 in 1990 and $3,141.95 in 1991.
Respondent contends that these amounts are income to petitioner
in addition to the $25,000 sale proceeds. Because respondent
asserted an increased deficiency in his amended answer based on
the inclusion in income of the insurance commissions, respondent
has the burden of proving that petitioner received the
commissions. See Rule 142(a).
Respondent does not explain why petitioner would have
received commission income after he sold the business at the end
of 1990. From the record before us, it appears that the
commission amounts listed in the Farmer’s Mutual policy registers
may include the amount paid as part of the purchase price
($10,038), which we have already determined was income to
petitioner. It is also possible that the additional commissions
listed for 1990, to the extent they exceed $10,038 ($2,844), and
the $3,141.95 listed for 1991 were received by Mr. Ihry after the
business was sold or were part of the purchase price, settled by
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