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Respondent determined a deficiency of $949 in petitioner’s
2000 Federal income tax.
The issue for decision is whether petitioner is entitled to
deduct for 2000 an alleged theft loss of $80,950 from 1980.
Petitioner resided in Rochester, New York, at the time she
filed her petition.
Petitioner refused to sign a stipulation of facts.
Petitioner filed Form 1040, U.S. Individual Income Tax
Return, for taxable year 2000. On her return, petitioner claimed
$80,950 under “other miscellaneous deductions”. Respondent
determined that petitioner was not entitled to the claimed
deduction.
In her petition, petitioner contended that she is entitled
to carry forward losses for 20 years. In her memorandum,
petitioner stated that her claimed deduction of $80,950 was due
to a theft loss from 1980. Petitioner further stated that in
1980 her landlord, Bobson Realty, through various agents, first
stored her belongings for months and subsequently threw them
away.
We first address whether petitioner is entitled to a theft
loss deduction. Section 165(a) allows a deduction for any loss
sustained during the taxable year and not compensated for by
insurance or otherwise. Section 165(c)(3), in relevant part,
limits such a deduction for individuals to losses of property not
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