Bilthouse v. United States

WILLIAMS, Circuit Judge.

Alan and Patricia Bilthouse seek to recover a tax refund on the basis that their shares of stock in a construction company became “worthless” in 1997 and were therefore “disposefd] of’ under 26 U.S.C. § 469(g). The government denied the re fund on the basis that the company became worthless in 1995 rather than 1997. The Bilthouses do not dispute that the company had no liquidating value in or after 1995 but contend that the company expected a large financial recovery from a lawsuit that would have allowed it to stay in business. Because the record does not demonstrate…