Douglas V. and Magdalene Merante - Page 11

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           T.C. 848, 861 (1972).  When or whether a debt became worthless is                          
           a question of fact, the answer to which lies in an examination of                          
           all the circumstances.  Boehm v. Commissioner, 326 U.S. 287, 293                           
           (1945); Estate of Mann v. United States, supra at 275; Dallmeyer                           
           v. Commissioner, 14 T.C. 1282, 1291 (1950).  The taxpayer must                             
           show some identifiable event which proves worthlessness in the                             
           year claimed.  United States v. S.S. White Dental Manufacturing                            
           Co., 274 U.S. 398, 401 (1927); Dallmeyer v. Commissioner, supra                            
           at 1291-1292.  There is no standard test or formula for                                    
           determining worthlessness within a given taxable year; the                                 
           determination depends upon the particular facts and circumstances                          
           of the case.  Lucas v. American Code Co., 280 U.S. 445, 449                                
           (1930); Crown v. Commissioner, 77 T.C. 582, 598 (1981); Dallmeyer                          
           v. Commissioner, supra at 1291.                                                            
                  On balance, we believe that petitioner's ability to recover                         
           anything from Time To Share or Sheldon became fully worthless in                           
           December 1990.  Time To Share's business was gone, as were its                             
           assets.  Indeed, the constant need of Sheldon to borrow funds and                          
           his submission of a worthless check were strong clues that                                 
           petitioner would not get his money back.  Sheldon's letter and                             
           disappearance in December of 1990 solidified the view that                                 
           nothing would be recovered.  Moreover, Sheldon confirmed this by                           
           testifying credibly that he was insolvent at the end of 1990.                              

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