- 10 -
Commissioner, 84 T.C. 809, 819-820 (1985), affd. without
published opinion 800 F.2d 260 (4th Cir. 1986); Rink v.
Commissioner, 51 T.C. 746, 753 (1969); Fisher v. Commis-
sioner, T.C. Memo. 1986-141; cf. Hutcheson v. Commissioner,
17 T.C. 14, 19 (1951); Walter v. Commissioner, T.C. Memo.
1979-132; Jeppsen v. Commissioner, T.C. Memo. 1978-343;
Bers v. Commissioner, T.C. Memo. 1976-263; Butrick v.
Commissioner, T.C. Memo. 1972-59; Escofil v. Commissioner,
T.C. Memo. 1971-131, affd. 464 F.2d 358 (3d Cir. 1972).
To hold otherwise would be to allow a business deduction
for unpaid compensation which was never reported as income.
See Hutcheson v. Commissioner, supra at 19; see also
Stengel v. Commissioner, T.C. Memo. 1992-570, affd. without
published opinion 996 F.2d 1227 (9th Cir. 1993), in which
the Court stated:
The law is clear regarding a failure to
realize anticipated future income. Such failure
is not a loss contemplated by section 165. As
the Supreme Court succinctly stated in Hort v.
Commissioner, 313 U.S. 28, 32-33 (1941), "Nothing
in section 23(e) [currently at section 165]
indicates that Congress intended to allow
petitioner to reduce ordinary income actually
received and reported by the amount of income he
failed to realize." * * *
The same is true of section 162.
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