- 5 - In his petition, petitioner did not raise the issue of losses allegedly resulting from the forfeiture of his rental properties. He did not seek to amend his petition to raise this issue, nor did he otherwise give proper notice before trial that he intended to raise it. Accordingly, the issue is not before the Court, and we will not consider it. See Frentz v. Commissioner, 44 T.C. 485, 490-491 (1965), affd. per order 375 F.2d 662 (6th Cir. 1967). Even if the issue were properly before us, however, petitioner would not be entitled to the claimed losses. Petitioner failed to introduce any credible evidence to establish the amounts of the alleged losses or the year in which they might have been realized. Indeed, because the forfeitures occurred after petitioner’s guilty plea in February 1989, they would not have given rise to any loss in 1988. See sec. 461(a); sec. 1.446-1(c)(1), Income Tax Regs. In any event, losses resulting from drug traffickers’ asset forfeitures are disallowed as contravening clearly defined public policy.5 See, e.g., Holt v. 5 On brief, petitioner suggests that the above-cited principle of public policy is nongermane here because his claimed losses did not result from a forfeiture related to drug trafficking but rather from a “breach of contract” as a result of a “reneged plea agreement.” Contrary to petitioner’s contentions, the Ohio Court of Appeals has repeatedly and consistently characterized the disposition of petitioner’s 141 rental properties as a forfeiture related to his drug trafficking charges. See, e.g., State v. Thrower, No. 20615 (Ohio Ct. App. Mar. 13, 2002); Thrower v. Anderson, No. 98AP-1152 (Ohio Ct. App. (continued...)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011