Greta Ann Clifton - Page 22

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               A deduction is authorized, with certain limitations, for               
          losses of property even though not connected with a trade or                
          business or a transaction entered into for profit if the loss               
          arises from "fire, storm, shipwreck, or other casualty, or from             
          theft."  Sec. 165(c)(3).                                                    
               Here, petitioner appears to argue that her incarceration was           
          an "other casualty," thus entitling her to the claimed deduction.           
          This Court has generally adhered to the view that in construing             
          the term "other casualty" as used in section 165(c)(3), the rule            
          of ejusdem generis is applicable; that is, in order for the loss            
          to be deductible, the taxpayer must prove that the destructive              
          event or happening was similar in nature to a fire, storm, or               
          shipwreck.  Newton v. Commissioner, supra.  Accordingly, we have            
          found that the term "other casualty" covers losses arising from             
          sudden, unexpected forces exerted on property, forces which                 
          abruptly change the property's form.  E.g., Marx v. Commissioner,           
          T.C. Memo. 1991-598; Wold v. Commissioner, T.C. Memo. 1963-154.             
               The sale of a car is not the type of casualty covered by               
          section 165(c)(3), even if such sale is compelled by a person's             
          imminent incarceration.  Accordingly, petitioner is not entitled            
          to deduct her realized loss under section 165(c).  Therefore, we            
          sustain respondent's determination as to this issue.                        
          Issue 5. Self-Employment Tax                                                
               Respondent determined that petitioner had additional self-             
          employment income subject to tax under section 1401.                        

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