Krahmer v. United States

OPINION

PHILIP R. MILLER, Judge:

In this suit for refund of 1976 and 1977 income taxes the question presented is whether plaintiff was entitled to theft loss deductions for the differences between the prices he paid for two oil paintings and their actual fair market values when he ascertained the artists were not as represented.

*51In about 1970, plaintiff, Wolf Krahmer,1 who had been primarily engaged in real estate purchases and sales became interested in works of art. He learned of Eilhard Mitscherlieh, an art dealer and restorer, and, over the ensuing 7 years, he purchased a number of paintings…