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are the existence of security or collateral, the demand for
repayment, records that may reflect the transaction as a loan,
and the borrower's solvency at the time of the loan. See Road
Matls., Inc. v. Commissioner, 407 F.2d 1121 (4th Cir. 1969),
affg. in part, vacating in part and remanding T.C. Memo. 1967-
187; Jewell Ridge Coal Corp. v. Commissioner, 318 F.2d 695, 699
(4th Cir. 1963), affg. T.C. Memo. 1962-194; Zimmerman v. United
States, 318 F.2d 611, 613 (9th Cir. 1963); Montgomery v. United
States, 87 Ct. C1. 218, 23 F. Supp. 130 (1938).
Petitioners have provided no documentation or other evidence
that would indicate the existence of a bona fide debt. As a
result of petitioners' failure to prove the amount and existence
of bona fide debt, we need not consider whether the "debt" became
worthless in 1990. Respondent's determination is sustained on
this issue.
Although petitioners do not assert alternatively that they
are entitled to a theft loss deduction, we point out here that
this position would have been unsuccessful as well. In order to
sustain a theft loss deduction, petitioners have the burden of
proving that they suffered a loss in the taxable year in question
as a result of a casualty or theft and the amount of such loss.
Axelrod v. Commissioner, 56 T.C. 248, 256 (1971). Petitioners
must also prove that they were the owners of the items stolen.
Draper v. Commissioner, 15 T.C. 135 (1950); see Jensen v.
Commissioner, T.C. Memo. 1979-379; Silverman v. Commissioner,
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