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part on other grounds, and remanded 318 F.3d 924 (9th Cir.
2003). The issue rests on the particular facts and circumstances
of each case, although, generally, “the year of the worthlessness
is fixed by identifiable events that form the basis of reasonable
grounds for abandoning any hope of recovery.” Id. at 204-205;
see also Estate of Mann v. United States, 731 F.2d 267, 276 (5th
Cir. 1984); Dallmeyer v. Commissioner, 14 T.C. 1282, 1291-1292
(1950).
Petitioner argues that, under the venture agreement for the
formation of Kirshner Global, he was entitled to reimbursement
for out-of-pocket costs. Petitioner testified that the venture
agreement was one of several such agreements that provided for
the formation of Kirshner entities. According to petitioner,
these Kirshner entities received interim financing. In addition,
petitioner contends he submitted a claim for reimbursement, and
it was approved by Kirshner.
Petitioner contends that his business relationship with
Kirshner and the Kirshner-related entities “effectively ended” in
2000, thus entitling him to a bad debt deduction for that year.
Respondent strongly disagrees with that contention and instead
argues the relationship ended in 1995 or 1996. Petitioner
testified:
When Kirshner decided not to do business any more with
us and go on and do business with someone else then
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