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State Net
Taxable Tax Capital Sched. E Operating
Year Wages Interest Dividends Refund (Losses) (Losses) (Losses)
1987 $5,272 $2,957 ($3,000) ($9,339,066)
1988 $400,000 262,895 395,255 (3,000) ($17,708) (694,227)
1989 1,000,000 701,424 218,188 (3,000) (231,737) (8,622,478)
1990 719,826 31,905 (3,000) (79,383) (25,850)
1991 6,921 133,587 16,136 $958 (3,000) (447)
F. Events After the 1980s
Petitioner married Mitra Rasson in New York, New York, in
1990. Petitioner began living with his family in France at a
time not specified in the record before September 11, 2001, and
continuing through the date of trial. His children attend school
there. Petitioner has never become a citizen of the United
States.
G. Respondent’s Settlement With Petitioner’s Father and Brother
Petitioner’s father and Phillip Elghanian each deducted
losses of $9,339,066 for 1980 from the expropriation of their
Iranian property. Those losses were carried forward to 1988 and
1989 by petitioner’s father and to 1989 by Phillip Elghanian. In
2003, the Commissioner allowed each of them an NOL of $3,868,946.
OPINION
A. Whether the Expropriation Loss Occurred in 1979 or 1986
To be a deductible loss under section 165, the transaction
must be closed, completed, and fixed by identifiable events in
the taxable year. Boehm v. Commissioner, 326 U.S. 287, 291-292
(1945); sec. 1.165-1(b), Income Tax Regs. Whether a loss
occurred during a particular taxable year is a question of fact.
Boehm v. Commissioner, supra at 294; Korn v. Commissioner, 524
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