On April 27, 2021, the Tax Court issued a Memorandum Opinion in the case of Baum v. Commissioner (T.C. Memo. 2021-46). The primary issues presented in Baum were whether the petitioners were entitled to deductions for expenses as reported on Schedules C (Profit or Loss from Business) for the years in issue and whether the petitioners were entitled to a theft loss deduction pursuant to IRC § 165 for 2015. Background to Baum v. Commissioner: Bamboozled, Hoodwinked, Swindled, and Scammed In 2010, the petitioner-husband was looking for new investment opportunities. He met an individual, who offered him the opportunity to invest in a business.  It seemed like a good investment, so the petitioners entered into a stock purchase agreement in June 2012 with the individual’s mother (no idea why, but these are the facts, Jack) for 100,000 shares at $1.50/share and a similar agreement with the individual for the same…