T.C. Mem o. 2 01 4- 21 0

UNITED STAT ES TAX COURT
SCOTT M. LANGERT, Peti ti on er v . COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 19 00 9- 12
. Fi le d Oct ob er 8 , 20 14
.
Sco ttM. Lan ge rt, p ro se. W il li am J. Greg g a ndJo hn D. Elli s, fo r res po nd en t.

MEMORANDUM FINDINGS OF FACT AND OPINION CHIECHI, J ud ge : Re sp on de ntde te rm in edth e fo ll owi ng de fic ie nc ie s i n, an d a ccuracy-rela te d p en al ti es un de r se ct io n 6 66 2( a) on , pet it io ne r’s Fed eral 1 in co m e ta x (t ax ):
All sec ti on refe ren ces are t o t he Int ern al Rev enue Co de (Co de ) in effe ctfor 1 th e y ears at i ss ue . All R

ul e ref eren ces are t o the Tax C ou rt Rul es of P ract ic e an d Pro cedur e.- 2 -

[* 2] Year Defi ci en cy Accu racy-Rel at edPen al ty Und er Se ct io n 6 66 2( a) 20 08 $2 3,2 23 $4 ,64 4.6 0 20 09 25 ,55 1 5,1 10 .20 The is su e rem ai ni ng forde ci si on is whet he r pe ti ti on er i s en ti tl edforhi s ta xabl e y ear 2 00 9 t o d educ t u nd er s ect io n 1 66 (a) acla im edba d d eb t. We ho ldth at he is no t. FINDINGS OF FACT The pa rti es st ip ul at edso m e o f th e fac ts , andth os e fac ts are s o fo un d. Pet it io ne r res id edinMarylan d a t the ti m e h e fi le d t he pe ti ti on . At the ti m e o f th e tr ia l i n thi s ca se , pet it io ne r ha d b een in vo lv edforap pr ox im at el y 30 y ears inon e o r m or e act iv it ie s i nv ol vi ng real pro pe rty (pet it io ne r’s real pr op erty act iv it ie s) th atin cl ud edbu y in g, s el li ng , and/o r ren ti ng cert ai n re al pro perty an d p ro vi di ng m an ag em en t s erv ic es forcert ai n re nt al real pro pe rty. Dur in g t he ap pr ox im at el y 30 y ears th atpe ti ti on er was in vo lv edinpe ti ti on er’s rea l p ro pe rty acti vi ti es , he m ad e lo an s o n abo utsi x d iff eren t o ccas io ns . At no ti m e dur in g t ha t p eri oddi d p et it io ne r (1 ) adve rti se hi m se lf t o b e a m on ey len de r or (2 ) ke ep a se pa rat e o ffi ce o r se parat e b oo ks an d re co rd s re la ti ng to an y of t he lo an s th athe ha d m ad e.- 3 -

[* 3] Aro un d e arl y

Apri l 2 00 3, p et it io ne r bo rro wed$1 98 ,75 0 fr om Merr il l Lync h Cred itCo rp . (Merril l Lync h l oa n) th athe was t o re pa y to th atco m

pa ny at 5 .78 pe rcen t i nt eres t o ve r 30 y ears . Peti ti on er s ecu redhi s M erri ll Ly nc h l oa n wi th cert ai n re nt al real pro pe rty tha t h e o wne d a t 4 71 0 Qu eb ec St reet , Col le ge Park , Mary la nd
. On Ap ril 10 , 20 03 , pet it io ne r tr an sf erre d $ 15 7,0 45 of t he pro ceed s o f hi s Merril l Lync h l oa n (Go rd onfun ds inqu es ti on ) to Ch ris to ph er Go rd on (Mr. Gor do n) . On th e sa m e d at e, Mr. Go rd on an d h is m ot he r, Marth a D. Gord on (Ms
. Gor do n) , si gn eda do cu m en t t it le d “ UNSECURED NOTE”. Pet it io ne r di d n otin 2
an y way sec ur e th e rep aym en t o f th e Gor do n fu nd s i n que st io n, s uc h a s b y requi rin g t ha t M r. Gord onor M s. Go rd on pro vi de hi m with c ol la te ral
. The un se curedGord on no te st at edas f ol lo ws: FOR VALUE RECEIVED, Chri st op he r Gor do n a ndMart haD. Gor do n p ro m is e to pa y

to th e o rd er o f Sco ttM. Lan ge rt t he su m of One Hun dr edFif

ty Seven Tho us an d F orty Five an d NO/ 10 0 DOLLARS ($ 15 7,0 45 .00 ), with i nt eres t atth e rat e o f Sev enpe r cen tu m pe r an nu m .

W e sh al l re fer t o t he do cu m en t t it le d “ UNSECURED NOTE” tha t M r. 2 Gor do n a ndMs . Gord on si gn edon Apri l 1 0, 2 00 3, as th e u ns ecu redGord on no te . Inres ol vi ng th e is su e p res en te d, we ac co rdno subs tant iv e si gn ifi can ce t o t he term “un se cu redGord on no te ”.- 4 -

[* 4] Sai d p rin ci pa l an d i nt eres t p ay ab le inm on th ly ins ta ll m en ts of One Tho us an d F orty Fou r an d 8 2/ 10 0 DOLLARS, wit h t he pri vi le ge of m ak in g l arg er p aym en ts inan y am ou nt . The fir stof s ai d p aym en ts to co m m en ce o n M ay

1, 2 00 3. Sa id pa ym en ts sh al l co nt in ue on th e sa m e d ay of e ach an d e ve ry

m on th th erea fte r un ti l p ai d; each in st al lm en t, wh enso pa id , to be ap pl ie d: fir st , to th e p aym en t o f th e in te res t o n t he am ou ntof p rin ci pa l re m ai nin g u np ai d, an d t he ba la nc e th ereo f cre di te d t o t he pri nc ip al
. Anditis ex pr es sl y

ag reedth atif d efau ltbe m ad e in th e p ay m en t o f an y

on e o f th e afo res ai d i ns ta ll m en ts when an d a s t he same sh al l b eco m e due an d p ay ab le , th en , andinth atev en t, the unpa id ba la nc e o f th e p rin ci pa l s um an d a ccru edin te res t s ha ll at t he op ti on of th e h ol de r he reo f aton ce b eco m e an d b e due an d p ay ab le
. The en ti re p rin ci pa l an d a ccru edin te res t the reo n, i f no t s oo ne r pa id , sh al l b eco m e due an d p ay ab le on Apri l 1 , 20 33
. The Mak ers joi nt ly andsev eral ly hereb y au th or iz e an d e m po wer an y

Ju st ic e o f th e Pea ce o r Cl erkof a ny Cou rt o f rec or d o r an y Att orne y -at -law to en te r jud ge m en t b y co nf es si on up onth e o ccu rren ce o f an y

de fau lthe reu nd er b y

Mak ers ag ai ns t al l M ak ers infav or of th e h ol de r he reo f, fo r th e p rin ci pa l b al an ce an d a ll accr ue d i nt eres t du e h ereu nd er p lu s co st s, i nc lu di ng reas on ab le att orne y ’s fees , expr es sl y waiv in g s umm on s o r othe r pr oc es s, an d d o fu rth er co ns en t t o th e im -m ed ia te ex ecu ti on of s ai d ju dg em en t, ex pr es sl y waiv in g be ne fitof a ll ex em

pt io n l aws . Befo re p et it io ne r tr an sf

erre d $ 15 7,0 45 to Mr. Go rd on on Apri l 1 0, 2 00 3, pe ti ti on er h adne ve r (1 ) tr an sf erre d a ny m on ey

to Mr. Go rd on or M s. Go rd on , (2 ) ch eck edth e cre di t ra ti ng of e it he r of th em , or (3 ) requi redeit he r of th os e in di vi du al s t o p ro vi de hi m with h is or h er fi na nc ia l s ta te m en ts sh owi ng ass et s,- 5 -

[* 5] in co m e, an d a ny oth er p ert in en t fi na nc ia l i nf orm at io n. No r ha d p et it io ne r be fo re h e tr an sf

erre d $ 15 7,0 45 to Mr. Go rd onon Apri l 1 0, 2 00 3, v eri fie d t he
so ur ce o f fund s fr om

whi ch Mr. Go rd on or M s. Go rd on wou ldbe ab le to co m pl y with t he term s o f th e u ns ecu redGord on no te th atth ey m ak e th e p aym en ts to pe ti ti on er as setforth inth atdo cu m en t. Mr. Go rd on us edth e Gor do n fu nd s i n que st io n a s p artof t he fin an ci ng for hi s p ur ch as e fo r $6 50 ,00 0 o f certa inreal pro pe rty at 9 07 8 B al ti m or e Ave nu e, Co ll eg e Park, M arylan d (B al ti m or e Ave nu e p ro pe rty). On M ay 1, 2 00 3, M r. Gord on m ad e th e fi rs t o f th e p aym en ts to pe ti ti on er as se t fo rth inth e u ns ecu redGord on no te . There aft er, Mr . Gord on m ad e ap pr ox im at el y 27 ad di ti on al m on th ly paym en ts to pe ti ti on er as setforthinth atdo cum en t. In20 06 , Mr. Gor do n s to pp edm ak in g t he pa ym en ts as s etforth inth e uns ecured Gor do n n ot e (Mr . Gord on ’s def au lt ). At th e ti m e in 20 06 when Mr. Go rd on st op pe d m ak in g t ho se pa y m en ts , th e m on th ly am ou nt s re m ai ni ng to be pa idas s et fo rth inth e u ns ecu redGord on no te to ta le d app ro xi m at el y $1 53 ,00 0 (a ll eg ed
ou ts ta nd in g d eb t). Afte r Mr. Go rd on ’s def

au lt , pet it io ne r as ke d M r. Gord on ora ll y on a nu m be r of oc cas io ns , bu t n otinwrit in g, t o p ay hi m all of t he all eg edou ts tand in g d eb t. Pet it io ne r ne ve r as ke d M s. Go rd on to pa y hi m all or a ny partof the all eg ed- 6 -

[* 6] ou ts ta nd in g d eb t. Aft er Mr . Gord on ’s def au lt , pet it io ne r di d n otpurs ue an y le ga l re m edy

with re sp ectto th atde fau lt
. 3 Aro un d Oct ob er 2 00 6, M r. Gord on fil eda pe ti ti on inba nkrupt cy (Mr. Gor do n’s b an krup tc y

pro ceed in gs ). Mr. Go rd on ’s ban krup tc y pro ceed in gs las te d fo r y ears aft er tho se pro ceed in gs were co m m en ced . Peti ti on er d idno t fi le a pr oo f of cla im inMr. Go rd on ’s ban krup tc y pro ceed in gs with re sp ectto th e al le ge d o ut st an di ng de bt
. So m et im e dur in g 2 00 6, the Bal ti m or e Ave nu e p ro pe rty was th e subjec t o f a fo recl os ur e au ct io n a ndwas s ol d a s p artof tha t au ct io n. Pe ti ti on er h adno t s ecu redth e rep aym en t o f th e Gor do n fu nd s i n que st io n wi thth e Bal ti m or e Ave nu e pr op erty , andhe di d n otfil e a p ro of of c la im inth atfor ecl os ur e au ct io n o r co nt act th e fo recl os ur e trus te e. Des pi te th e fo ll owi ng pro vi si on inth e u ns ecu redGord on no te , pet it io ne r 3 di d n otatt em

ptto ob ta in a jud gm en t ag ai ns t M r. Gord onan d/ orMs . Gord on with res pe ctto Mr. Go rd on ’s def au lt : The Mak ers [Mr. Go rd on an d M s. Go rd on ] joi nt ly andsev eral ly he reb y au th or iz e an d e m

po wer an y

Ju st ic e o f th e Pea ce o r Cl erkof an y Co urt o f rec or d o r an y

Att orne y -at -la w to en te r jud ge m en t b y co nf es si on up on th e o ccu rren ce o f an y de fau lthe reu nd er b y

Mak ers ag ai ns t al l M ak ers infav orof t he ho ld er h ereo f, fo r th e p rin ci pa l ba la nc e an d a ll accrue d i nt eres t due he reu nd er p lu s co st s, i nc lu di ng reas on ab le att orne y ’s fees , exp res sl y waiv in g s umm on s o r ot he r pr oc es s, an d d o fu rth er co ns en t t o t he imm ed ia te ex ecu ti on of s ai d jud ge m en t, ex pr es sl y

waiv in g b en efi t o f al l ex em pt io n l aws .- 7 -

[* 7] Pet it io ne r ti m el y

fil edFo rm

10 40 , U.S. Ind iv idua l In co m e Tax Return, fo r hi s t ax ab le y ear 2 00 9 (2 00 9 re tu rn ). Pet it io ne r at ta ch edto hi s 2 00 9 re tu rnSch ed
ul e C, Pro fitor Lo ss Fro m Bu si ne ss (20 09 Sch edul e C). Inpe ti ti on er’s 2 00 9 Sch edul e C, p et it io ne r sh owe d h is “ Pri nc ip al bu si ne ss or p ro fes si on ” as “ Pro pe rty Man ag em en t” . In tha t s ch edul e, pe ti ti on er re po rte d “ Gro ss rece ip ts or s al es ” o f $1 ,14 9 a ndde du ct ed , in te r al ia , “ Oth er ex pe ns es ” o f $6 ,00 0. Th os e cl ai m ed

“ Oth er ex pe ns es ” in cl ud ed$3 ,00 0 d es cri be d i n p et it io ne r’s 20 09 Sch edul e C as 4 th e “ Lan ge rt Lo ss ”. The “ Lan ge rt Lo ss ” was a lo ss of $ 3,0 00 th atpe ti ti on er 5 cl ai m edwith re sp ectto Mr. Go rd on ’s def au lton th e uns ecu redGord on no te (20 09 cl ai m edSch edul e C Go rd on bu si ne ss lo ss ). On Ap ril 27 , 20 12 , res po nd en t i ss ue d t o p et it io ne r a n ot ic e o f de fic ie nc y (n ot ic e) wi th res pe ctto hi s t ax ab le y ears 20 08 an d 2 00 9. In th atno ti ce, res po nde ntde te rm in ed , in te r al ia , to di sa ll ow the de du ct io n t ha t p et it io ne r ha d c la im ed fo r th e 2 00 9 c la im edSch edul e C Go rd on bu si ne ss lo ss of $ 3,0 00 . In s up po rt o f th atde te rm in at io n, re sp on de ntde te rm in edinth e n ot ic e:

Pet it io ne r di d n otcla im

a “ Lan ge rt Lo ss ” in Sch edul e C o r in an y ot he r pa rt 4 of th e ta x re tu rnth athe fil edforhi s t ax ab le y ear 2 00 8. Inpe ti ti on er’s 2 00 9 S ch edul e C, p et it io ne r al so cla im edas p artof “ Oth er 5 ex pe ns es ” $ 3,0 00 de sc rib edinth atsch edul e as th e “ Bu tc he r Los s” . Peti ti on er co nc ed edat t ria l tha t h e is no t en ti tl edto th atlo ss .- 8 -

[* 8] It was de te rm in edth aty ouare n otall owe d ade du ct io n i n t he am ou nt (s ) an d i n t he y ear( s) sh own ab ov e si nc e itha s n otbe enestabl is he d t ha t the de du ct io n was in cu rred , pai d, o r ex pe nd edfor th e de si gn at edpu rp os e. Furth erm or e, itha s n otbe enest ab li sh edth at y ouare en ti tl edto th e d educ ti on un de r an y Sect io n o f th e In te rn al Rev enue Co de . Accor di ng ly, y ou r ta xabl e in co m e is in crea se d fo r th e am ou nt (s ) an d year(s ) sh own ab ov e. OPINION Pet it io ne r be ars th e b ur de n o f es tabl is hi ng th atth e d et erm in at io n i n t he
no ti ce tha t re m ai ns at i ss ue is erro ne ou s. See Ru le 14 2( a); W el ch v. Hel ve rin g, 29 0 U.S. 1 11 , 11 5 (1 93 3) . Mor eo ve r, de du ct io ns are a m at te r of leg is la ti ve gra ce, an d p et it io ne r be ars th e b ur de n o f pr ov in g e nt it le m en t t o a ny deduc ti oncla im ed
. See I NDOPCO, Inc . v. Co m m is si on er, 5 03 U.S. 79 , 84 (19 92 ). The C od e an d t he reg ul at io ns th ereu nd er re qu ire d p et it io ne r to m ai nt ai n re co rd s s uf fic ie ntto est ab
li shth e am ou ntof a ny deduc ti on cla im ed . See s ec. 6 00 1; sec . 1.6 00 1- 1( a), In co m e Tax Reg s. On b rie f, pe ti ti on er t ak es th e p os it io n t ha t h e is en ti tl edforhi s t ax ab le y ear 20 09 to de du ctth e en ti re am ou ntof t he all eg edou ts ta nd in g d eb t (i .e., app ro xi
m at el y $1 53 ,00 0) as aso -cal le d b us in es s b adde bt
. In s up po rt o f th atpo si ti on , 6
The reco rddo es no t es tabl is h wh y pe ti ti on er re po rte d o nl y

$3 ,00 0 a s t he 6 am ou ntof t he 20 09 cla im edSch edul e C Go rd on bu si ne ss lo ss an d c la im s h ere t he en ti re am ou ntof t he all eg edou ts tand in g d eb t (i .e., app ro xi m at el y $1 53 ,00 0) as de du ct ib le un de r se c. 16 6( a) fo r hi s t ax ab le y ear 2 00 9.- 9 -

[* 9] pe ti ti on er ar gu es th athe “ m ad e th e Loa n [t o M r. Gord on ] fo r the s ol e pur po se of o bta in in g i nter es t in co m e , pu rs ua ntto th e te rm s o f th e Loa n.” It i s re sp on de nt ’s po si ti onth atpe ti ti on er i s n oten ti tl edto a so -cal le d bu si ne ss ba d d eb t d educ ti on , or t o any oth er d educ ti on , forhi s t ax ab le y ear 2 00 9 with re sp ectto th e al le ge d o ut st an di ng de bt . In s up po rt o f th atpo si ti on , res po nde ntarg ue s t ha t p et it io ne r ha s fa il edto carry hi s b ur de n o f es tabl is hi ng th atth e al le ge d o ut st an di ng de bt(1) was abo nafid e d eb t, (2 ) was a so -cal le d b us in es s de bt , and(3) be cam e p art ia ll y or wh ol ly w orth le ss du rin g 2 00 9, the y ear f orwhi ch pe ti ti on er i s cl ai m in g aba d d eb t d educ ti on un de r se ct io n 1 66 (a). W e sh al l as su m e arg ue nd o t ha t p et it io ne r ha s ca rri edhi s b ur de n o f es tabli sh in g tha t the all eg edou ts ta nd in g d eb t i s a b on a fi de de btwithi n t he m ean in g o f
se ct io n 1 66 an d t he reg ul at io ns an d t he cas el aw th ereu nd er. W e ad dr es s wh ethe r, as res po nd en t ar gu es , pet it io ne r ha s fa il edto carry hi s b ur de n o f es tabl is hi ng th at th e al le ge d o ut st an di ng de btco ns ti tu te s a s o- cal le d b us in es s d eb t. Res ol ut io n o f th atqu es ti on res ol ve s wh ethe r pe ti ti on er i s en ti tl edforhi s t ax ab le y ear 2 00 9 t o t he ba d d eb t d educ ti on th athe is cla im in g und er s ect io n 1 66 (a) fo r th e al le ge d o ut st an di ng de bt
. 7 W e ad dr es s b rie fly whethe r, as res po nd en t al so arg ue s, p et it io ne r ha s s at is
7 fie d h is bu rd enof e st ab li sh in g t ha t the all eg edou ts ta nd in g d eb t b ecame part ia ll y (co nt in ue d...)- 10 -

[* 10 ] Inord er fo r al l o r a p orti on of ade btto be de du ct ib le as aba d d eb t u nd er se ct io n 1 66 (a), the de bt , in te r al ia , m us t co ns ti tu te (1) a de btcrea te d o r acqui redin
co nn ect io n wi th a tr ad e o r bu si ne ss or ( 2) a de btth e lo ss fro m th e worth le ss ne ss of whi chis in cu rredinth e ta xp ay er’s trad e o r bu si ne ss . Sec. 1 66 (d )(2 ). The m ere 8 factth ata ta xp ay er m ak es a lo an“ fo r the s ol e pur po se of o bta in in g i nter es t in co m e ,” as pe ti ti on er ar gu es on bri ef, d oe s n ot , st an di ng alo ne , lea d t o afin di ng th atth e lo anis (1) a de btcrea te d o r acqui redinco nn ect io n wi th a tr ad e o r bu si
ne ss or ( 2) a de btth e lo ss fro m th e worth le ss ne ss of wh ic h i s i nc urredinth e ta xpa y er’s trad e o r bu si ne ss . Mo reo ve r, in ord er fo r a t ax pa y er t o b e en ti tl edto a ba d d eb t d educ ti on un de r se ct io n 1 66 (a) i n c on ne ct io n wi th th e tr ad e o r bu si ne ss of l en di ng m on ey , th e d eb t m

us t h av e b eensu st ai ne d i n t he co ur se of t he tax pay er’s act iv ity of
m ak in g l oans th atwas “ so ex te ns iv e an d c on ti nu ou s as to ele va te th atact iv it y to th e st atus of asep arat e b us in es s.” Im el v. Co m m is si on er, 6 1 T.C. 3 18 , 32 3 (1 97 3)
. (...co nt inue d) 7 orwho ll y wort hl es s dur in g 2 00 9, the y ear f orwhi ch pe ti ti on er i s cl ai m in g aba d de btde du ct io n u nd er s ec. 1 66 (a). See in fra n ot e 1 0. Whe re an y

no nb us in es s d eb t b eco m es wort hl es s wi th in th e ta xabl e y ear, 8 th e lo ss res ul ti ng th eref

ro m is co ns id eredto be a lo ss fro m th e sa le or e xc ha ng e du rin g t he tax ab le y ear o f a cap it al ass ethe ldforno t m or e th anon e y ear. Se c. 16 6( d) (1 ).- 11 -

[* 11 ] Pet it io ne r te st ifi ed , andwe ha ve fou nd , th athe m ad e ap pr ox im at el y si x lo an s t o c ert ai n i nd iv idua ls ov er the ap pr ox im at el y 30 y ears du rin g wh ic h h e co nduc te d p et it io ne r’s real pro pe rty acti vi ti es . In Im el , we fou ndth at“ th e 9
m ak in g o f ei gh t o r ni ne lo an s i n t he co ur se of a4-year p eri od ” d idno t “ el ev at e[] th atact iv it y

to th e st atus of asep arat e b us in es s.” Id
. On t he reco rdbe fo re u s, we fi ndth atpe ti ti on er h as fai le d t o c arry his bu rde n o f es tabl is hi ng th athe was i n t he bu si ne ss of m ak in g l oans at the ti m e in 20 03 th athe tra ns ferr edth e Gor do n fu nd s i n que st io n (i .e., $1 57 ,04 5) to Mr. Go rd on . On t ha t re co rd , we furth er fi ndth atpe ti ti on er h as fai le d t o c arry his burd enof
es tabl is hi ng th atth e tr an sf er o f th e Gor do n fu nd s i n que st io n t o M r. Gord onco nst itut ed(1) a de btcrea te d o r acqui redinco nn ect io n wi th a tr ad e o r bu si ne ss of pe ti ti on er o r (2 ) a d eb t the lo ss fro m th e worth le ss ne ss of wh ic h was in curredin hi s t rad e o r bu si ne ss . Bas edup onou r ex am in at io n o f th e en ti re re co rdbe fo re u s, we h ol d t ha t pe ti ti on er h as fai le d t o c arry his bu rd enof e st ab li sh in g t ha t h e is en ti tl edfor hi s

Pet it io ne r al so tes ti fie d, b utwe ha ve no t fo un d, tha t h is de ci si on to tra ns fer 9 th e Gor do n fu nd s i n que st io n t o M r. Gord on was a“bu si ne ss de ci si on ”. Pet it io ner’s u se of t he word“bu si ne ss ” in hi s t es ti m on y do es no t co ntro l the m ean in g a cco rd edto th e wor d “ bu si ne ss ” fo r ta x p ur po se s.- 12 -

[* 12 ] ta xabl e y ear 2 00 9 t o ade du ct io n u nd er s ect io n 1 66 (a) fo r th e al le ge d
ou ts ta nd in g d eb t atis su e. 1 0 W e h av e co ns id eredall of t he pa rti es ’ res pe ct iv e co nt en ti on s an d a rg um en ts th atare n otdi sc us se d h erei n, an d we f in d t he m to be witho utm eri t, i rrel ev an t,
an d/ orm oo t. To re fle ctth e fo reg oi ng an d t he co nc es si on s o f th e p art ie s, Deci si on wil l b e en te redun de r Ru le 15 5.

Ass um in g a rg ue nd o t ha t the all eg edou ts ta nd in g d eb t co ns ti tu te s a b on a 1 0 fid e d eb t u nd er s ec. 1 66 an d t ha t p et it io ne r ha d e st ab li sh edth atitis no t a n on bu si ne ss de btforpu rp os es of t ha t s ect io n, we wo ul d fi ndonth e rec or d b efo re u s th athe ha s fa il edto carry hi s b ur de n o f es tabl is hi ng th atth e al le ge d o ut st an di ng de btbe cam e ei th er wh ol ly or pa rti al ly w orth le ss intax ab le y ear 2 00 9, the y ear f or whi chpe ti ti on er i s cl ai m in g t he de du ct io n u nd er s ec. 1 66 (a). In th is co nn ect io n, pe ti ti on er h as fai le d t o s ho w any ide nt ifi ab le ev en ts th atco ul d h av e fo rm edth e ba si s fo r hi s h av in g re as on ab le gro un ds as o f th e en d o f 20 09 forhi s ab an do ni ng an y ho pe of r eco ve rin g t he all eg edou ts tand in g d eb t. See Cro wn v . Comm is si on er, 77 T.C. 58 2, 5 98 (19 81 ).