Holt v. Commissioner
United States Tax Court
Petitioner, who had been engaged in the trade or business of trafficking marijuana, was arrested for transporting marijuana. As a result of that arrest, petitioner's truck and horse trailer were seized and forfeited and his marijuana was confiscated. Held, forfeitures and confiscation resulted in losses, not expenses.
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Petitioner, who had been engaged in the trade or business of trafficking marijuana, was arrested for transporting marijuana. As a result of that arrest, petitioner's truck and horse trailer were seized and forfeited and his marijuana was confiscated. Held, forfeitures and confiscation resulted in losses, not expenses. Also held, losses inflicted on petitioners because of petitioner-husband's illegal activities are disallowed under sec. 165; it is against a sharply defined national policy to allow those losses.
1Opinion of the Court
OPINION
Tietjens, Judge:
Respondent determined the following deficiencies in petitioners’ Federal income taxes:
Petitioner Year Deficiency
Bill Doug Holt.1972 $59,403.82
Gail E. Holt.1972 77,577.65
Certain concessions having been made, the only issue remaining is whether petitioners are entitled to a deduction under section 1621 or section 165 for assets seized from and forfeited by petitioner Bill Doug Holt for possession of marijuana with intent to distribute for remuneration.
This case was fully stipulated pursuant to Rule 122, Tax Court Rules of Practice and Procedure. The stipulation of facts…
2Cases cited12 opinions
- Commissioner v. TellierSupreme Court of the United States · 1966
- Hopkins v. BaconSupreme Court of the United States · 1930
- Edwards v. BrombergCourt of Appeals for the Fifth Circuit · 1956
- Fuller v. CommissionerUnited States Tax Court · 1953
- Fuller v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1954
7 more not listed; retrieve them via the Exa API.
3Cited by38 opinions
- Schad v. CommissionerUnited States Tax Court · 1986
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- Holmes Enterprises, Inc. v. CommissionerUnited States Tax Court · 1977
- R. R. Hensler, Inc. v. CommissionerUnited States Tax Court · 1979
- Stephens v. CommissionerUnited States Tax Court · 1989
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