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minimal documents and testimony are sufficient to substantiate
the amount of loss with respect to Pharmacare.
Petitioners also claim that they are entitled to recognize
losses from petitioner’s contributions to The Chamberlin Corp.
and Chamberlin Parenteral. To substantiate their losses,
petitioners have provided only a statement of net worth, prepared
in 1982, that showed that petitioners’ net worth was $6,032,052.
They argue that their net worth fell to zero in 1985 as a result
of The Chamberlin Corp. failure, and, therefore, they should be
entitled to a loss of $6,032,052. Such a statement,
uncorroborated by receipts, expenses, or other documentation that
reflects how assets were lost or disposed of, is insufficient for
determining the amount of losses sustained by petitioners. See
Henry Schwartz Corp. v. Commissioner, 60 T.C. 728, 745-746
(1973). Thus, where petitioners have failed to provide any
documentation to substantiate their loss, they have failed to
carry their burden of proving entitlement to deductions.
Petitioners have provided documentation relating to a loan
that was made from a third party to petitioner personally and
loans that were made to The Chamberlin Corp., which were secured
and satisfied by personal property of petitioner. First,
petitioners argue that they are entitled to recognize $1,750,000
of loss stemming from a personal loan from Freedom Federal.
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