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Petitioners introduced many undated documents. Petitioner
testified that he incurred some expenses in 1994 because he had
placed the documents for those expenses in the box meant to
contain only documentation of expenses incurred in 1994. Other
expenses, however, were supposedly incurred in 1995 because
petitioner had placed the documents for those expenses in the box
meant to contain only documentation of expenses incurred in 1995.
The invoices for repair and maintenance expenses that were
on another company’s letterhead and were dated did not show
whether petitioner actually paid them. For example, petitioner
submitted a $252 invoice for painting and a $145 invoice for lawn
care, but he introduced no corresponding documentary proof that
he paid for the services. Petitioner’s testimony was the only
evidence petitioner submitted indicating that he paid the repair
and maintenance expenses.
Petitioner also submitted more than 20 different invoices
from a hardware store to support his deduction for supplies.
Petitioner did not, however, submit corresponding receipts,
canceled checks, or credit card statements that would have shown
he paid the amounts indicated on these invoices.
Regarding bad debt expenses, petitioner testified that he
occasionally made small loans in his real estate business to
potential home buyers. He further testified that when a
purchaser needed larger sums of money, $10,000 or greater, he
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