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transaction entered into for profit. In order to be deductible,
a loss must be evidenced by a closed and completed transaction,
fixed by identifiable events, and actually sustained during the
taxable year. Boehm v. Commissioner, 326 U.S. 287, 291-292
(1945); sec. 1.165-1(b), Income Tax Regs. A loss is deductible
only for the taxable year in which it is sustained. Sec. 1.165-
1(d)(1), Income Tax Regs. The determination of whether a loss
occurred during a particular taxable year is purely one of fact.
Korn v. Commissioner, 524 F.2d 888, 890 (9th Cir. 1975), affg.
T.C. Memo. 1973-258. A critical inquiry is the year in which the
taxpayer loses control over and possession of the property at
issue. United States v. S.S. White Dental Manufacturing Co., 274
U.S. 398 (1927). Respondent suggests that to the extent
petitioners incurred a loss, the loss occurred before 1997. To
the extent the advance of funds was an investment in ITG, it
would appear that the loss occurred when ITG became defunct in
1994. ITG’s corporate charter was terminated in 1994, and no
business was ever conducted.
No portion of the loss with respect to which reimbursement
may be received is sustained, for purposes of section 165, until
it can be ascertained with reasonable certainty whether such
reimbursement will be received. Sec. 1.165-1(d)(2)(i), Income
Tax Regs. Petitioner did not seriously pursue reimbursement of
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