- 6 -
& Television, Inc., supra at 235; Deputy v. du Pont, 308 U.S.
488, 493 (1940).
Petitioner has not established that he incurred an NOL or,
if he did, the amount of any NOL that may be carried over to the
subject years. First, as to his claimed theft loss, section
165(a) and (c)(3) generally allows a taxpayer such as petitioner
to deduct losses from the theft of property if he establishes
(1) that a theft occurred under the law of the jurisdiction where
the alleged loss occurred, Monteleone v. Commissioner, 34 T.C.
688, 692 (1960), (2) the amount of the theft loss, Zmuda v.
Commissioner, 79 T.C. 714, 728-729 (1982), affd. 731 F.2d 1417
(9th Cir. 1984), and (3) the date that the loss from the theft
was discovered,4 McKinley v. Commissioner, 34 T.C. 59, 63-64
(1960). River City Ranches # 1 Ltd. v. Commissioner, T.C. Memo.
2003-150. Here, petitioner through the limited record that he
has chosen to build has not established any of the facts
necessary to meet any of these requirements.
Second, even if petitioner had established those facts, he
has not proven that any portion of an NOL that he incurred before
1997 was applied properly to one or more of the subject years.
Petitioner must prove not only that he had an NOL in a year
4 A theft loss is treated as sustained when discovered by
the taxpayer, sec. 165(e), except to the extent that the taxpayer
has a reasonable prospect of recovery, Viehweg v. Commissioner,
90 T.C. 1248, 1255-1256 (1988).
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