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that petitioner sustained a theft loss of medical equipment used
by her in her critical care nursing activity during 1996. She
claimed a loss of $4,500 on her 1996 income tax return but
presented no evidence to substantiate that amount. At trial, she
presented a list of the equipment totaling $1,709.03, which was
not substantiated. On this record, pursuant to Cohan v.
Commissioner, supra, the Court allows petitioner a theft loss
deduction of $750 for 1996. Since the theft involved property
used in petitioner’s trade or business, the amount of the loss is
not subject to the limitation provisions of section 165(h)(2).
Sec. 165(c)(1).
The fifth issue is whether petitioner is entitled to a
claimed dependency exemption deduction for her sister, Cecilia
Ofori, for 1993 and 1994. Ms. Ofori was reported as a dependent
on petitioner’s return using an incorrect Social Security number.
A correct Social Security number was never provided.8
Section 151(c) allows a taxpayer to deduct an annual
exemption amount for each dependent, as defined in section 152.
Under section 152(a), the term “dependent” means certain
8 Sec. 151(e), which was enacted on Aug. 20, 1996, as
part of the Small Business Job Protection Act of 1996, Pub. L.
104-188, sec. 1615(a), 110 Stat. 1853, expressly denies a
dependency exemption with respect to an individual unless the
Social Security number for such individual is provided on the
return claiming the exemption. However, this section is
applicable to all tax returns due after Sept. 18, 1996, and thus
is not applicable to the years at issue.
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