- 17 - By notices of deficiency issued on February 19, 1993, respondent disallowed all of petitioner's casualty loss deduction and associated carrybacks and carryforward. OPINION A. Casualty Loss Deduction 1. Contentions of the Parties Petitioner argues that she may deduct her losses from the earthquake as a casualty loss. She contends that she offered evidence showing the difference between the fair market values of her home and personal property before and after the earthquake and the adjusted bases of the property, and that respondent offered no evidence that the earthquake did not cause the damage. Respondent contends that petitioner has not proven that her losses exceeded the amount of insurance proceeds she received, or that the fair market value of the property was less after the earthquake than before. As discussed below, we conclude that petitioner’s losses were greater than her insurance reimbursement but less than the amount she deducted. 2. Eligibility for a Casualty Loss Deduction Individuals generally may deduct losses to property caused by casualties such as earthquakes. Sec. 165(c)(3). The loss must exceed $100 and 10 percent of the individual’s adjusted gross income. Sec. 165(h)(1) and (2)(A)(ii). Taxpayers may notPage: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011