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no standard test or formula for determining worthlessness within
a given taxable year. Crown v. Commissioner, 77 T.C. 582, 598
(1981). Worthlessness is a question of fact. Sec. 1.166-2(a),
Income Tax Regs. A debt becomes worthless in the year in which
identifiable events clearly mark the futility of any hope of
further recovery. James A. Messer Co. v. Commissioner, 57 T.C.
848, 861 (1972).
In order for us to find that petitioner qualified for a bad
debt deduction, petitioner must prove that his right of
subrogation against VIP became worthless in 1986, the year in
which it is claimed as a deduction. Putnam v. Commissioner, 352
U.S. 82, 85 (1956); Intergraph Corp. v. Commissioner, 106 T.C.
312, 324 (1996); sec. 1.166-9(e)(2), Income Tax Regs. Petitioner
has not shown the futility of any hope of recovery under his
right of subrogation. After the sale to Mr. Grossman, VIP still
had one asset, namely the replacement note. In March 1987,
petitioner, after many attempts at collection, had VIP initiate
suit against Mr. Grossman in order to collect on the replacement
note. In September 1987, VIP amended its petition against Mr.
Grossman to include M&G and MBG as defendants. In November 1987,
the district court for Oklahoma County decreed that petitioner
was entitled to a judgment, jointly and severally, against M&G
and MBG in the amount of $709,6604 plus interest and attorneys
4 Although this amount is less than the amount of the debt
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