- 5 - that a theft, as defined by local law, occurred. See Viehweg v. Commissioner, 90 T.C. 1248, 1253 (1988); Luman v. Commissioner, 79 T.C. 846, 860 (1982). A loss attributable to a mysterious disappearance of property does not qualify for deduction as a theft loss. See Jacobson v. Commissioner, 73 T.C. 610, 613 (1979). Petitioner claimed a theft loss deduction for property left behind when he separated from Ms. Stephens in January 1998. At trial, petitioner’s explanation of the circumstances surrounding the loss of this property suggest, at best, that the property mysteriously disappeared.1 Furthermore, his testimony at trial was in sharp contrast to his testimony at the deposition, where he testified that Ms. Stephens sold the property. Nothing in the record suggests a theft has occurred under Texas law. See Tex. Penal Code Ann. sec. 31.03 (Vernon 2002); Tex. Fam. Code Ann. secs. 3.001-3.003 (Vernon Supp. 2002). Therefore, petitioner is not entitled to the theft loss deduction here in dispute. Respondent’s determination disallowing the theft loss deduction claimed on petitioner’s 1998 Federal income tax return is sustained. 1 With respect to the items allegedly stolen, petitioner testified at trial: “I don’t know what happened to them. I know I don’t have them.”Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011