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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
action.
Contentions we have not addressed are irrelevant, moot, or
meritless.
To reflect the foregoing,
Decision will be entered
for respondent.
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Last modified: May 25, 2011