George P. Brown - Page 5

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          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%).                                                     




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