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California. Neither document, however, is sufficient to satisfy
petitioner's burden of proof.
The existence of an escrow agreement merely shows that, at
one point in time, property was held by a third party for
purposes of transfer to another upon the performance of specified
conditions. See Cal. Civ. Code sec. 1057 (West 1982). Unless
and until the conditions are satisfied, legal title does not pass
to the grantee.
Petitioner claims that Mr. Dakar's unlawful detainer
complaint against him substantiates his investment in the
Business. In fact, the unlawful detainer complaint proves merely
that petitioner defaulted on an obligation to pay $5,000 in
monthly rent to Mr. Dakar. It describes neither the nature nor
the amount of petitioner's investment in the Business.
Petitioner has presented sufficient evidence to lead us to
believe that he operated the Business, but he has not presented
sufficient evidence regarding the nature of his ownership
interest or the amount of his investment to justify a capital
loss deduction. Therefore, we reject petitioner's claim that he
is entitled to such a deduction.
II. Stock Loss Deduction
Petitioner claims that he is entitled to a $1,500 stock loss
deduction pursuant to section 1244. We disagree.
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