Sarunas Abraitis - Page 3

                                                 - 3 -                                                   
                  On September 29, 1993, petitioner wrote a letter to AWS                                
            requesting that his four units in WCTVA be redeemed for the                                  
            amount of his original investment, $25,000, plus 10-percent                                  
            interest.  He again requested a return of his investment in a                                
            letter to AWS dated October 10, 1993.  He received no response to                            
            these two letters.  On October 14, 1993, petitioner tried to                                 
            telephone AWS but was only able to reach its answering service.                              
            Since October 1993, petitioner has made numerous attempts to                                 
            contact AWS and has sought the assistance of several government                              
            agencies and courts in his effort to recover his investment.                                 
                  Petitioner did not claim a loss with respect to his                                    
            investment with AWS on his 1993 return.  He first considered                                 
            claiming a loss at the suggestion of one of respondent's revenue                             
            agents during an audit of his 1993 return.                                                   
                  Section 165(a) allows as a deduction any loss sustained                                
            during the taxable year and not compensated for by insurance or                              
            otherwise.  In the case of an individual, the deduction is                                   
            allowable for losses incurred in any transaction entered into for                            
            profit.  Sec. 165(c)(2).                                                                     
                  Respondent argues that any loss that petitioner incurred                               
            with respect to his investment with AWS was not sustained during                             
            his 1993 taxable year.  With respect to the proper year to claim                             
            a deduction for a loss, section 1.165-1(d), Income Tax Regs.,                                
            provides:                                                                                    






Page:  Previous  1  2  3  4  5  Next

Last modified: May 25, 2011