Joyce Aston - Page 26

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          render the Los Angeles agency office a "qualified financial                 
          institution".  Thus, we hold that the three entities involved               
          herein were not similar institutions.                                       
               In sum, we hold that neither BCCI, S.A., its IOMB, nor its Los         
          Angeles agency office is a "qualified financial institution"                
          pursuant to section 165(l)(3)(D).14  Accordingly, petitioner is not         
          entitled to a casualty loss in 1991.                                        
          Issue 2.  Bad Debt                                                          
               Because petitioner is not entitled to a casualty loss, we must         
          determine whether she is entitled to a bad debt deduction under             
          section 166.  Petitioner argues that her claimed loss should at             
          least be treated as a 1991 nonbusiness bad debt.  Respondent agrees         
          that the claimed loss is properly treated as a nonbusiness bad              
          debt, but contends that the loss was not worthless at the close of          
          1991.                                                                       
               A nonbusiness debt is a debt other than "a debt created or             
          acquired * * * in connection with a trade or business of the                
          taxpayer" or "a debt the loss from the worthlessness of which is            
          incurred in the taxpayer's trade or business."  Sec. 166(d)(2)(A)           

               14   The above analysis makes it unnecessary to consider               
          whether petitioner incurred a loss "as of the close of the                  
          taxable year" that "can reasonably be estimated", sec.                      
          165(l)(1)(A), and whether such loss was "on account of the                  
          bankruptcy or insolvency of such institution", sec. 165(l)(1)(B).           







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