Michael Rosen - Page 5

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          the fair market value of the property immediately before the                
          theft.  See secs. 1.165-7(b), 1.165-8, Income Tax Regs.  The only           
          documentary evidence submitted in support of petitioner’s                   
          contention was the affidavit of confession.  This document was              
          filed with a civil court in the State of New York and merely                
          operates as a confession of civil judgment, wherein Mr. Gallant             
          acknowledged that he owes petitioner $250,000.  It does not                 
          establish that the aforementioned property was stolen.                      
               In short, petitioner presented no credible evidence that a             
          theft occurred.  He has failed to establish that he is entitled             
          to the section 165 theft loss deduction.  See sec. 165(c)(3).               
          Accordingly, respondent may proceed with the proposed collection            
               Contentions we have not addressed are irrelevant, moot, or             
               To reflect the foregoing,                                              

                                                  Decision will be entered            
                                             for respondent.                          

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Last modified: May 25, 2011