Humes Houston Hart - Page 11

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          63 T.C. 736, 740 (1975), affd. without published opinion 523 F.2d           
          1053 (5th Cir. 1975).  Petitioner did not introduce any evidence            
          at trial which would support a finding that any of his stock or             
          securities were stolen.  To the contrary, the record shows that             
          the loss petitioner sustained resulted from the sale of his stock           
          to satisfy his margin requirement.  Petitioner has failed to                
          establish that he is entitled to a theft loss.  See, e.g., Marr             
          v. Commissioner, T.C. Memo. 1995-250.                                       

          3.  Net Operating Losses                                                    
               On his return for 1988, petitioner claimed a net operating             
          carryover deduction in the amount of $58,462.  In her notice of             
          deficiency, respondent disallowed the NOL deduction for 1988.               
               Petitioner offered no evidence or testimony at trial with              
          respect to the source or how he arrived at this deduction.                  
          Petitioner's 1988 tax return simply shows "Net Operating Loss               
          (1987) $58,461.95".  Furthermore, petitioner's return for the               
          1987 year reflects that his $123,801 loss from his stock activity           
          was fully offset by his wages and other income.                             
               Petitioner contends that he sustained the NOL from his stock           
          activity in which he was either a dealer or a trader.  Respondent           
          contends that petitioner is not entitled to the NOL deduction               
          claimed for 1988 because he presented no evidence to substantiate           
          the claimed NOL carryover from 1987.  We agree with respondent.             

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