Glen D. Wood, Karen Kraak Wood, and Karen Eslinger Wood v. United States

EDITH H. JONES, Circuit Judge:

At issue is the status as taxable income of, or the right to a loss deduction for proceeds from drug smuggling forfeited to the federal government. The district court ruled that the drug proceeds were taxable income, and that the Appellant was not entitled to a loss deduction on the forfeited property under 26 U.S.C. § 1341 or § 165 on statutory and public policy grounds. 693 F.Supp. 452. Finding no error in the district court’s grant of summary judgment to the government, we affirm.

BACKGROUND

In 1978 and 1979, Appellant Glen D. Wood 1 received commissions on…