Dudley Joseph and Myrna Dupuy Callahan - Page 15

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               In the present case, nothing in the record shows that                  
          petitioners' termite infestation occurred over a short period of            
          time.  Petitioner testified that when petitioners were deciding             
          whether to paint their house or put up vinyl siding, painters               
          advised them that the wood was in good condition.  However,                 
          petitioner failed to indicate in what year she received this                
          suggestion, and there is no evidence or indication that the                 
          painter was specifically looking for termite infestation or was             
          qualified to do so.  Moreover, since his painting contract turned           
          on his analysis of the wood, the painter's opinion could hardly             
          be considered unbiased.  We hold that petitioners are not                   
          entitled to claim as casualty losses their costs of repairing any           
          termite damage incurred in 1989 and 1990.                                   
               Petitioners' casualty losses purportedly incurred as a                 
          result of Tropical Storm Allison present an issue of                        
          substantiation.  Generally, taxpayers are required to                       
          substantiate claimed deductions and credits by maintaining the              
          records needed to establish the amount of such items.  Sec. 6001;           
          sec. 1.6001-1(a), Income Tax Regs.  Even though a taxpayer fails            
          to maintain adequate records, under some circumstances we may               
          estimate the amount a taxpayer is entitled to deduct if he                  
          provides a means of making a reasonable estimate of the expense.            
          Cohan v. Commissioner, 39 F.2d 540 (2d Cir. 1930).  However, in             
          order for us to make an estimate, there must be sufficient                  
          evidence to show that at least the estimated amount actually was            




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