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Unsecured Swift Loan
Petitioner became a judgment lien creditor of the Swifts in
1993 as a result of their failure to pay notes made in 1991. The
next relevant event for which we have any evidence is that in
1996 the Swifts filed a petition in bankruptcy. There are no
other identifiable events that can be considered to fix the
worthlessness of the Swift notes in 1992, 1993, or 1994.
Personal Loans
The Wooton and Rawoof loans were made to friends of
petitioner. In June of 1991 the Wootons gave petitioner a check
that was subsequently dishonored on an unspecified date. The
Rawoof loan was discharged in bankruptcy in 1994. There is no
evidence that the Wooton loan became worthless during the years
at issue. There is evidence that the Rawoof loan became
worthless in 1994.
Petitioner, however, has not shown that the dominant, as
opposed to merely a significant, motivation for either loan was
business related. See United States v. Generes, 405 U.S. 93, 106
(1972). Self-serving statements alone will not suffice to prove
a taxpayer's business purpose in advancing money. Id.
The record in this case is not sufficient for the Court to
find that petitioner is entitled to a deduction with respect to
his loans other than as allowed by respondent on Schedules D for
the years under consideration. Because petitioner has failed to
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