Theodore Major Green and Jacqueline Green - Page 7

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          considered to be a statute in the nature of workmen’s                       
          compensation.  Take v. Commissioner, 804 F.2d 553, 557 (9th Cir.            
          1986), affg. 82 T.C. 630 (1984), and T.C. Memo. 1985-388.                   
               The Social Security Act provides for disability benefits for           
          an injury regardless of whether the injury occurred in the course           
          of employment.  See 42 U.S.C. sec. 423(d)(1)(A) (2000).                     
               Petitioner’s Social Security disability benefits received in           
          2003 were provided to petitioner under the Social Security Act.             
          Because the Social Security Act is not a statute in the nature of           
          workmen’s compensation, petitioners must include in gross income            
          for 2003 $11,227 of the $13,208 in Social Security disability               
          benefits that petitioner received in 2003, as per the calculation           
          provided under section 86.                                                  

          Section 165 Deduction                                                       
               Section 165(c) provides a deduction from income for                    
          taxpayers who incur an uncompensated loss relating to a trade or            
          business, to a transaction entered into for profit, or to a                 
          casualty resulting in an uncompensated loss of property.                    
               Petitioner’s $166,013 uncollected judgment involving the               
          shopping cart was personal in nature and had no connection with             
          petitioner’s trade or business or with a transaction entered into           
          for profit.  Petitioner may not deduct under section 165(c)(1) or           
          (2) any portion of petitioner’s uncollected judgment.                       

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