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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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