Michael E. and Linda S. Murray - Page 4




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            1970); Feinstein v. Commissioner, 24 T.C. 656, 657-659 (1955);                             
            see also Kitch v. Commissioner, 104 T.C. 1, 5 (1995) (fact that a                          
            case is fully stipulated does not lessen the burden of proof),                             
            affd. 103 F.3d 104 (10th Cir. 1996).  The taxpayer, to establish                           
            worthlessness, must prove not only current balance sheet                                   
            insolvency, but also the absence of any reasonable expectation                             
            that the assets of the corporation will exceed its liabilities in                          
            the future.  See Steadman v. Commissioner, supra at 376-377.                               
            Whether stock is worthless is a factual determination, as is the                           
            determination of the year in which stock becomes worthless.  See                           
            Boehm v. Commissioner, 326 U.S. 287, 293 (1945); Finney v.                                 
            Commissioner, 253 F.2d 639, 642 (9th Cir. 1958), affg. in part                             
            and revg. in part T.C. Memo. 1956-247; Austin Co. v.                                       
            Commissioner, 71 T.C. 955, 969 (1979).                                                     
                  We hold that petitioners have failed to meet their burden of                         
            proving that Mr. Murray’s Poinciana stock became worthless in                              
            1993.  Petitioners rely primarily on their bald assertions on                              
            brief to the effect that the stock became worthless at the time                            
            of the foreclosure.  These assertions do not persuade us that the                          
            stock became worthless in 1993.  See Aagaard v. Commissioner, 56                           
            T.C. 191, 209 (1971); see also Hoover v. Commissioner, 32 T.C.                             
            618 (1959) (a taxpayer’s belief that the cost of stock cannot be                           
            recovered is not sufficient to establish that the stock is                                 
            worthless).  Nor are we persuaded by the mere fact that Poinciana                          





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