James O. Jondahl - Page 46

                                       - 46 -                                         
         corporate tax return.  Therefore, we agree with respondent that              
         petitioner must report the $13,674.35 as compensation received in            
         1992.                                                                        
                   4.   Unreported Income in 1993                                     
              In 1993, Taxman paid $310 to repair a 1991 Ford Probe owned             
         by Mary.  Petitioner argues that the $310 was an expense of                  
         Taxman because he used the car on business trips.  Specifically,             
         petitioner testified that he “thinks” he used Mary’s car “a                  
         couple of times for business trips.”  Petitioner offered no                  
         evidence beyond his testimony on the business trips for which he             
         used Mary’s car.  Given the uncertainty with which he testified              
         and his lack of proper record keeping, petitioner has not met his            
         burden of proving that the $310 for the car repair was not                   
         compensation to him in 1993.                                                 
              In 1993, WFIC, doing business as Epic Real Estate, brokered             
         a real estate transaction for petitioner’s sister, Ms.                       
         Schoeppach.  As part of the transaction, WFIC issued a check for             
         $7,000 to Ms. Schoeppach.  Eight days later, Ms. Schoeppach paid             
         Epic Real Estate $7,000 as a downpayment.  Respondent determined             
         in the notice of deficiency that the $7,000 payment by WFIC to               
         Ms. Schoeppach was income to petitioner.  Petitioner argues that             
         after the transaction was completed, he canceled Ms. Schoeppach’s            
         $7,000 debt to WFIC because Epic Real Estate received a $9,000               
         commission which WFIC reported on its 1993 corporate return.                 






Page:  Previous  35  36  37  38  39  40  41  42  43  44  45  46  47  48  49  50  51  52  53  54  Next

Last modified: May 25, 2011