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in 1997 for a loss of $5,245 on the disposition of the Winnebago.
Respondent disallowed this deduction in full.
Taxpayers generally are entitled to deduct from gross income
certain losses sustained during the taxable year. Sec. 165(a).
However, individual taxpayers may not deduct a loss unless the
loss was incurred in a trade or business or another activity
entered into for profit, or the loss arose from a casualty or
from theft. Sec. 165(c).
Petitioner testified that he purchased the Winnebago solely
for business purposes. Petitioner also testified that, in the 10
to 15 days in which he had access to the vehicle, he used it for
one business trip and had transferred all of his business files
into a filing cabinet located in it, causing him to lose the
files when the Winnebago was taken by its co-owner. We do not
accept petitioner’s testimony that the Winnebago was to be used
solely for business purposes. The contract indicated that the
Winnebago was for personal use and the Winnebago was financed
jointly with Ms. Melson, who subsequently took possession of it
solely for her own purposes. Furthermore, petitioner did not
indicate how the Winnebago would have been used in his business.
We find that the use of this vehicle was personal in nature and
not connected with petitioner’s business. Thus, any losses
related thereto are not deductible as a business loss. Sec.
165(c)(1). Petitioners have not argued that any loss relating to
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