- 5 - 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.Page: Previous 1 2 3 4 5
Last modified: May 25, 2011