Srichai and Pusadee Rungrangsi - Page 8

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          we have jurisdiction over petitioners' 1993 tax year, we shall              
          address petitioners' entitlement to a loss deduction in 1993.  Sec.         
               Under section 165(a), taxpayers generally are entitled to              
          deduct losses not otherwise compensated for by insurance or                 
          otherwise.  Section 165(c) limits the deductions of noncorporate            
          taxpayers to losses incurred in a trade or business activity, a             
          for-profit activity, or casualty and theft losses.                          
               To decide whether a taxpayer is entitled to a loss as the              
          result of a sale which is a part of a trade or business or for-             
          profit activity, we must first determine whether a sale is deemed           
          to have occurred.  "The term 'sale' is given its ordinary meaning           
          for Federal income tax purposes and is generally defined as a               
          transfer of property for money or a promise to pay money."  Grodt           
          & McKay Realty, Inc. v. Commissioner, 77 T.C. 1221, 1237 (1981)             
          (quoting Commissioner v. Brown, 380 U.S. 563, 570-571 (1965)).              
          Whether a sale has occurred depends on the facts and circumstances.         
          Haggard v. Commissioner, 24 T.C. 1124, 1129 (1955), affd. 241 F.2d          
          288 (9th Cir. 1956).  The relevant factors to be considered include         
          whether legal title passes; how the parties treat the transaction;          
          and whether an equity was acquired in the property.  See Grodt &            
          McKay Realty, Inc. v. Commissioner, supra.                                  
               At trial, Mr. Rungrangsi testified that he sold Stanton                
          Mexicatessen to Ms. Eagatatt on September 15, 1993, apparently in           

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