Derwyn J. Booker - Page 18

          worthless in 1984.  Accordingly, we find that petitioner is not             
          entitled to a bad debt deduction in taxable year 1984.                      
          Respondent's determination is sustained on this issue.                      
               Petitioner argues in the alternative that he is entitled to            
          deduct the loss on his investment in Carter as a theft loss for             
          1984.  Respondent argues otherwise.  Section 165 allows as a                
          deduction a theft loss sustained during the taxable year and not            
          compensated for by insurance or otherwise.  Sec. 165(a), (c)(3).            
          Section 165(e) provides that the deduction for such loss shall be           
          treated as sustained in the taxable year in which the taxpayer              
          discovered the loss.  Sec. 1.165-8(a)(2), Income Tax Regs.                  
          Petitioner bears the burden of proving a loss by theft, the                 
          amount of the loss, and the year in which the loss was                      
          discovered.  Rule 142(a).                                                   
               Petitioner has not met his burden of proving either the                
          amount of the alleged theft loss or the year in which the loss              
          was discovered.  Accordingly, based upon the record in the                  
          instant case, we find that petitioner has not provided sufficient           
          evidence to establish his entitlement to a theft loss under                 
          section 165 for taxable year 1984.                                          
          Issue 3.  Unemployment Compensation                                         
               Petitioner received unemployment compensation in the amount            
          of $5,312 in 1984.  Section 85(a) provides that if the sum of a             
          taxpayer’s adjusted gross income and the taxpayer’s unemployment            
          compensation is greater than the “base amount”, then the amount             

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