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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 that 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.
Based on the record, we find that petitioner has failed to
establish that the debt became worthless in 1988. Petitioner
advanced the funds to Maxted on July 12, 1988, and was not repaid
within 90 days; i.e., by October 10, 1988. However, petitioner
continued telephone discussions with Maxted over the next several
months. When Maxted's telephone line was disconnected and
petitioner visited the shop in Phoenix in early 1989, petitioner
realized he would not get his money from Maxted. On balance, we
find a lack of proof that the debt became worthless in 1988.
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