Aladar Deutsch & Sylvia G. Deutsch

Summary

The Court held that petitioners were entitled to a 2010 theft-loss deduction of $925,000 for funds transferred in connection with the purported $70 million investment deal, but not for additional amounts advanced to cover Mr. Visel's living expenses. The Court also held that petitioners were not liable for the accuracy-related penalty because they reasonably relied on their CPA's advice and acted with reasonable cause and in good faith. The decision directs entry under Rule 155, subject to the computation confirming a substantial understatement.