Carl W. and Barbara H. Patterson - Page 15

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               At trial, petitioner alleged that he made some telephone               
          calls to Mr. Trueheart concerning his claims.  However,                     
          petitioner admitted that his telephone calls were unanswered, and           
          he did not persist in making contact with Mr. Trueheart.                    
               At trial, petitioner also alleged that he had health                   
          problems that prevented him from actively pursuing his claim                
          against Mr. Suiter until 1992.  Despite these allegations,                  
          petitioner was actively involved in the commercial real estate              
          market in 1991.  Indeed, on his Schedule C for that year,                   
          petitioner deducted travel expense in the amount of $9,509.                 
          Thus, we cannot credit petitioner's allegation that health                  
          problems prevented him from pursuing his claims against Mr.                 
          Suiter in 1991.                                                             
               Based on the foregoing, we find that petitioner had no                 
          reasonable prospect of recovering the $55,000 from Mr. Suiter               
          after 1990.  We uphold respondent's determination that                      
          petitioner's loss from the transaction with Mr. Suiter was not              
          sustained in 1992.  Petitioner's loss is therefore not deductible           
          in 1992.                                                                    
               To reflect our disposition of the disputed issue,                      

                                                  Decision will be entered            
                                             for respondent.                          

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