Barbara Ann Tudyman - Page 31

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          Appliances and carpeting are worth much less after 7 years than               
          after 1 year.                                                                 
               For a few items that had lost value before the earthquake,               
          petitioner deducted cost rather than the fair market value.  She              
          did not consider depreciation in estimating the precasualty fair              
          market value of her clothes that were damaged.                                
               Petitioner had some items repaired that had been damaged by              
          the earthquake, such as the buffet server and the dining room                 
          table and chairs.  If a taxpayer has repaired property damaged by             
          a casualty, the cost of repairs may be a better measure of the                
          loss than an appraisal.  Clapp v. Commissioner, 321 F.2d 12 (9th              
          Cir. 1963), affg. 36 T.C. 905 (1961); Pfalzgraf v. Commissioner,              
          67 T.C. at 791; Keith v. Commissioner, 52 T.C. 41, 49 (1969).                 
          Petitioner incorrectly used a diminution in value method rather               
          than the actual repair cost to measure her loss for these items.              
               Petitioner claims that things fell on and scratched her                  
          refrigerator and stove.  She also claims that heavy things fell               
          on and bent and scratched her knives and forks.  We think                     
          petitioner overestimated the extent of damage to these items.                 
          We are not convinced that the earthquake extensively damaged her              
          refrigerator, oven, blender, electric iron, kitchen sink, ladder,             
          utensils, telephone, rack, and all clocks, or that it destroyed               
          napkins, tablecloths, towels, and a bath mat.  We are not                     
          convinced that she lost $520 of canned goods, $4,000 of plumbing              
          fixtures, 400 pieces of china, and 122 pieces of stemware.                    

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