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manner, support his claim. We cannot, therefore, allow the
$38,000 as a deductible casualty loss.
We need not address respondent's argument that 1994, and not
1990, was the proper year in which petitioners could claim a
casualty loss deduction. Respondent makes this argument because
1994 was the year in which petitioners settled their claim
against Pedro-Holland for $30,000. We would simply point out
that this recovery had no bearing on the computation of the
amount of any unreimbursed loss suffered by petitioners.
As a final word, we would note that with regard to 1994,
petitioners' accountant, Charles C. Brewster, testified that in
computing the tax consequences of petitioners' ultimate
disposition of the PEDRO in 1994, he subtracted from basis the
$100,000 casualty loss taken on the 1990 return. Since we have
sustained respondent's disallowance of this deduction,
petitioners may be in position to recompute to their advantage
the tax consequences of the sale of the PEDRO.
To reflect the foregoing and concessions by respondent,
Decision will be entered under
Rule 155.
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