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interest in a corporation is worthless, and the taxable year in
which such worthlessness occurs, are questions of fact with
respect to which petitioners generally bear the burden of proof.
Rule 142(a); Boehm v. Commissioner, 326 U.S. 287, 294 (1945);
Welch v. Helvering, 290 U.S. 111, 115 (1933).2 Further,
taxpayers are expected to maintain adequate records to
substantiate claimed losses. Sec. 6001.
Generally, a stock interest in a corporation will be treated
as wholly worthless when the underlying corporation has no
liquidation value and no foreseeable value. Delk v.
Commissioner, 113 F.3d 984, 986 (9th Cir. 1997), revg. T.C. Memo.
1995-265; Morton v. Commissioner, 38 B.T.A. 1270, 1278-1279
(1938), affd. 112 F.2d 320 (7th Cir. 1940). The absence of any
foreseeable value ordinarily is established by some identifiable
event in the corporation’s life. Delk v. Commissioner, supra at
986; Austin Co. v. Commissioner, 71 T.C. 955, 970 (1979); Morton
v. Commissioner, supra at 1279.
Petitioner claims that in July of 1997 he received, through
PGI as his nominee, a $200,000 loan from Wells Fargo and that he
transferred this $200,000 in loan proceeds to Garza, who in turn
transferred the $200,000 to Adrical on petitioner’s behalf.
2 Petitioner does not assert that the burden of proof should
shift to respondent under sec. 7491.
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