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Commissioner, 89 T.C. 986, 993-994 (1987) (even if a taxpayer
has a profit objective, the investment is not recognized for
tax purposes if the transaction lacks economic substance).
Petitioners have not shown that this case is different from
Mahoney or Cherin; that is, petitioners have not argued or shown
that the Century transaction had economic substance. Petitioners
do not dispute respondent's determination that the Century
transaction was a sham. We conclude that the Century investment
program was an economic sham and that it should be disregarded
for Federal income tax purposes. Pasternak v. Commissioner, 990
F.2d 893, 898 (6th Cir. 1993), affg. Donahue v. Commissioner,
T.C. Memo. 1991-181; Illes v. Commissioner, 982 F.2d 163, 166
(6th Cir. 1992) ("If the transaction lacks economic substance,
then the deduction must be disallowed without regard to the
'niceties' of the taxpayer's intent"), affg. T.C. Memo. 1991-449.
Therefore, petitioners may not deduct their cash investment. In
view of our conclusion, we need not decide whether petitioners
invested in the Century program with a profit objective or
whether their investment was tax motivated.
Petitioners claim that they may deduct their cash investment
in Century because Century took their cash contributions
fraudulently. Petitioners have not shown that Century acted with
criminal intent to deprive them of their cash contributions.
Thus, no theft loss deduction is allowable. Nor may petitioners
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