South Community Association - Page 12

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          oral testimony.  We must be wary, on the one hand, of the                   
          courtroom's becoming a quagmire in which an honest litigant is              
          mired and, on the other hand, of the courtroom’s becoming a                 
          refuge for the proficient liar.  See Diaz v. Commissioner,                  
          58 T.C. 560, 564 (1972); Hawkins v. Commissioner, T.C. Memo.                
          1993-517, affd. without published opinion 66 F.3d 325 (6th Cir.             
          1995).  We have evaluated each referenced witness’s testimony by            
          observing his or her candor, sincerity, and demeanor and by                 
          assigning weight to the elicited testimony for the primary                  
          purpose of finding disputed facts.  See Neonatology Associates v.           
          Commissioner, 115 T.C. 43, 84 (2000), affd. 299 F.3d 221 (3d Cir.           
          2002).  We determine the credibility of each witness, weigh each            
          piece of evidence, draw appropriate inferences, and choose                  
          between conflicting inferences in finding the facts of a case.              
          See id.; see also Gallick v. Baltimore & O.R. Co., 372 U.S. 108,            
          114-115 (1963); Boehm v. Commissioner, 326 U.S. 287, 293 (1945);            
          Wilmington Trust Co. v. Helvering, 316 U.S. 164, 167-168 (1942).            
               We hear and view the testimony of respondent’s three                   
          witnesses to be more credible than that of petitioner’s six                 
          witnesses, whom we find to be not credible.  Our perception of              
          petitioner’s six witnesses (and our resulting disregard of their            
          testimony) is supported by our review of independent indicia of             
          reliability found in the record and from the reasonable                     
          inferences that we draw therefrom.  First, Clausing, the security           

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