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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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