Tuesday, May 21, 2013

Allen v. Commissioner case brief

Allen v. Commissioner case brief
16 T.C. 163, 1951 U.S. Tax Ct.

CASE SYNOPSIS: Petitioner individual filed a petition contesting respondent Commissioner of Internal Revenue's adjustment disallowing a deduction for the loss of a diamond brooch by theft, accounting for a deficiency of $ 1,800.16 in petitioner's income tax for 1945.

FACTS: Petitioner owned a diamond brooch having a fair market value of $ 2,400. Petitioner went to New York City, N.Y., to visit the Museum of Art. At closing time, petitioner was on the stairwell of the museum with over 5,000 people. When the closing signal was sounded, the visitors streamed down the stairway. Upon reaching the bottom two or three steps, petitioner realized that she did not have the brooch on her coat, which she had worn to the museum. Petitioner notified the Museum and filed a police report stating that the brooch was stolen from her coat. Petitioner filed a tax return for 1945, and under a "Schedule of Gains and Losses," she claimed a loss of $ 2,400 for the brooch. Respondent filed a notice of deficiency, disallowing the deduction on the basis that the information submitted was not sufficient to establish theft in connection with the loss of the brooch. Petitioner contested the finding, and the court sustained respondent's findings. The court held that petitioner could not prove that the pin was stolen, failing to satisfy her burden of proof.

CONCLUSION: The court entered a decision for respondent, sustaining its determination.

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