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corroborate petitioner’s testimony. The unavailability of
corroborating documents does not excuse a taxpayer’s failure to
carry the burden of proof. See Malinowski v. Commissioner, 71
T.C. 1120, 1124-1125 (1979).
Petitioners claim that they were the victims of theft at the
hands of Vavlitis and, therefore, should be entitled to deduct
their losses arising from their loans to and investment in
Pharmacare as a section 165(c) theft loss. Petitioner also
claims that he engaged in the trade or business of promoting
pharmaceutical companies from 1978 to 1985 and, therefore, that
he is entitled to deduct any losses arising from loans to or
investment in Pharmacare, The Chamberlin Corp., and Chamberlin
Parenteral as section 162(a) business expenses or section 166(a)
business bad debts.
In coming to a decision on the issues in this case, it is
necessary to calculate the amount of losses incurred by
petitioners in years predating the tax years in issue. We do not
have jurisdiction over years prior to 1985. See sec. 6214(b).
However, the Court may consider events that occurred in prior
years when such consideration is necessary to determine the tax
liability for the years in issue. See Lone Manor Farms, Inc. v.
Commissioner, 61 T.C. 436, 440 (1974), affd. without published
opinion 510 F.2d 970 (3d Cir. 1975).
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