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the FTC case “were still ‘our’ property when the FTC made
hundreds of illegal sales in commercially unreasonable
manner-–while serving as fiduciary".4
The primary issue for decision is whether petitioner is
entitled to all or part of the $38,046,524 loss deduction claimed
on her 1998 return as the carryover of a 1992 business loss. At
trial, petitioner stated that she was no longer claiming the
entire amount of that deduction; yet, she reiterated that she was
entitled to deduct losses carried forward from T.G. Morgan, Inc.
In the alternative, petitioner claimed the following items as
deductible losses: (1) $733,500 for the theft loss of a pension
fund; (2) $225,000 as carryforward legal expenses; (3) a $142,482
investment loss on a condominium and lot in Florida; (4) a
$42,500 investment loss on a Simbari painting; (5) a $561,375
carryforward business or investment loss on rare coins;5 and (6) a
$125,403 carryforward business or investment loss on historical
documents (collectively referred to as the enumerated items).
These enumerated items, by the Court’s own calculation, total
4 The record does not explain the difference between the
$815,000 value petitioner placed on the pension fund in the
letter attached to her 1996 return and the $733,500 value she
placed on it at trial.
5 Petitioner characterized the losses on the coins as
rare coins held personally, $302,500; rare coins mishandled out
of Safrabank personal loan account in 1991, $155,650; and rare
miscellaneous coins lost in 1994-97, $103,225.
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