- 5 - adjusted basis. Helvering v. Owens, 305 U.S. 468, 471 (1939); Lamphere v. Commissioner, 70 T.C. 391, 395 (1978); sec. 1.165- 7(b)(1), Income Tax Regs. Since petitioner's adjusted gross income for 1992 is $51,215, he is entitled to a casualty loss deduction only if he proves that he sustained a loss in excess of $5,222.2 Petitioner submitted a number of photographs as evidence of the damage caused to his home by hurricane Andrew. Based on these photographs, we are convinced that petitioner sustained a casualty loss during 1992. However, petitioner failed to substantiate the amount of the loss claimed on his return. He submitted no receipts showing the value of his damaged property. In the event that a taxpayer establishes that he has incurred a deductible loss, but is unable to substantiate the precise amount of the loss, we may estimate the amount of the deductible loss, bearing heavily against the taxpayer whose inexactitude in substantiating the amount of the loss is of his own making. Cohan v. Commissioner, 39 F.2d 540, 543-544 (2d Cir. 1930); see e.g., Daniel v. Commissioner, T.C. Memo. 1997-328. In order to make such an estimate, the taxpayer must present evidence sufficient to provide some rational basis upon which an 2 This amount includes: (1) The section 165(h)(1) limitation of $100; and (2) the section 165(h)(2) limitation of $5,122 ($51,215 x 10%).Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011