- 4 -
Id. Section 165(e) provides that "any loss arising from theft
shall be treated as sustained during the taxable year in which
the taxpayer discovers such loss."
Petitioner must prove the adjusted basis of his property.
Millsap v. Commissioner, 46 T.C. 751, 760 (1966), affd. 387 F.2d
420 (8th Cir. 1968). A loss cannot be computed where the
taxpayer's basis in property is not proven. Id.; Leighton v.
Commissioner, T.C. Memo. 1995-515, affd. without published
opinion 108 F.3d 332 (5th Cir. 1997); Fisher v. Commissioner,
T.C. Memo. 1986-141.
Petitioner presented no records to support even the
existence of the equipment. He presented no bills of sale,
receipts, canceled checks, or business records to establish the
basis of the equipment. Petitioner testified as to dollar
amounts regarding the equipment but his testimony was not
credible. We are not required to accept the self-serving
testimony of petitioner as gospel. Tokarski v. Commissioner, 87
T.C. 74, 77 (1986). We find that petitioners are not entitled to
deduct any loss under section 165 because petitioner failed to
prove his adjusted basis in the property.
Calendar year individual taxpayers must file a Federal
income tax return by April 15 following the close of the calendar
year. Sec. 6072(a). Section 6651(a)(1) imposes an addition to
tax for failure to file a Federal income tax return by its due
Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011