Barbara Ann Tudyman - Page 22

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          of petitioner’s home by subtracting the estimated cost of repairs             
          from its pre-earthquake fair market value.                                    
               In Pfalzgraf, we approved an appraiser’s estimate of the                 
          cost of repairing property as a measure of the taxpayers’                     
          casualty loss.  67 T.C. at 788.  Here, Halpin figured                         
          petitioner’s casualty loss by estimating the cost of restoring                
          petitioner's home to its pre-earthquake condition.                            
               Respondent argues that Halpin’s testimony should be given                
          little weight because he is not an engineer.  We disagree.                    
          Halpin was a credible and knowledgeable witness.                              
               Respondent argues that we should give Halpin’s report less               
          weight because Halpin first saw petitioner's property 5 years                 
          after the earthquake.  We agree.  We give Halpin’s report less                
          weight because some of the property damage could have occurred                
          during those 5 years.                                                         
               Respondent pointed out that Halpin testified that the second             
          floor was sloped, yet Halpin did not measure the second floor and             
          did not note that it was sloped on his diagram of that floor.  In             
          his diagram of the first floor, he noted that it was sloped.  We              
          do not think Halpin’s failure to measure the second floor is                  
          significant.  He testified that he could feel the slope by                    
          walking across the floor, and that he did not take measurements               
          because it would be expensive to do so and because he thought it              
          was sufficient to measure the first floor.  Santangelo testified              
          that he had to level the second floor before he retiled it.                   

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