- 30 -
A yearend account statement shows that petitioners paid a total
of $186,370 in interest on margin loans during 2000. The $19,255
appears to be a portion of the $186,370, which respondent already
conceded petitioners were entitled to deduct. The record
establishes that petitioners paid only $186,370 in interest to
Merrill Lynch and did not pay an additional $20,164 as claimed on
their return. Nevertheless, based on respondent’s concession, we
find that petitioners are entitled to an additional itemized
deduction of $19,255.
The “US Bank Fees” expense of $26,000 represents bank fees
petitioners purportedly paid to US Bancorp. Respondent concedes
that petitioners are entitled to deduct this type of expense as a
miscellaneous itemized deduction. However, respondent argues
that petitioners are entitled to deduct only $12,924 in bank
fees. The US Bancorp statements of account show that petitioners
paid $12,924 in bank fees to US Bancorp in 2000. There is no
evidence of a greater payment. The statements of account are
sufficient for respondent to meet his burden of proof.
Therefore, we find that petitioners are entitled to a
miscellaneous itemized deduction of only $12,924 with respect to
the US Bancorp fees.
The “Cash Pay” expenses of $330,979 and $123,000, and the
“Other” expenses of $322,962, represent deposits made by
petitioner into his Merrill Lynch brokerage account to exercise
Page: Previous 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 NextLast modified: May 25, 2011