Tucker v. Commissioner of Internal Revenue

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Petitioner seeks review of the Commissioner's determination that he owes income tax deficiencies and related penalties for 2004, 2005, and 2006. Petitioner was the president, director, and sole shareholder of a Florida “S” corporation called Paragon Homes Corporation. I.R.C. 165(a) allows a deduction for “any loss sustained during the taxable year and not compensated for by insurance or otherwise.” The court concluded that the tax court did not clearly err in determining that Paragon did not abandon the properties at issue in 2008, and that the evidence amply supports this finding, along with the finding that the properties were not worthless to Paragon at the end of 2008. Accordingly, the court concluded that the tax court properly determined that petitioner had not met his burden of demonstrating that the Commissioner’s disallowance of the section 165(a) loss deduction was incorrect. The court affirmed the tax court's decision. View "Tucker v. Commissioner of Internal Revenue" on Justia Law