Court of Appeals for the Fifth Circuit January 20, 1989, 88-3088 (Glen D. Wood, Karen Kraak Wood, and Karen Eslinger Wood v. United States)

EDITH H. JONES, Circuit Judge:

At issue is the status as taxable income of, or the right to a loss deduction for proceeds from drug smuggling forfeited to the federal government. The district court ruled that the drug proceeds were taxable income, and that the Appellant was not entitled to a loss deduction on the forfeited property under 26 U.S.C.