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We find that petitioners have substantially complied with
the substantiation requirements and have made a good faith
attempt to provide respondent with sufficient information. We
accept Mrs. Daniel's estimates of the fair market values of the
donated items. Accordingly, we hold that petitioners are
entitled to charitable contribution deductions for their
donations to the Veterans in the amounts claimed on their 1991
and 1992 returns.
The second issue for decision is whether petitioners are
entitled to a casualty loss deduction for 1992. Petitioners
claimed a casualty loss in the amount of $11,300 on their 1992
return for the following items:
Flood Damage to Wall To Wall Carpet & Dry Wall $5,940
Water Damage to Wall Cabinets 1,610
Wind Storm Damage - Loss of Five Trees & Removal 3,750
After accounting for certain limitations, petitioners
claimed a casualty loss deduction in the amount of $3,100.
Respondent disallowed the claimed deduction in the statutory
notice of deficiency.
Section 165(a) allows as a deduction any loss sustained
during the taxable year and not compensated for by insurance or
otherwise. In the case of an individual's nonbusiness property,
the deduction is limited to losses that "arise from fire, storm,
shipwreck, or other casualty, or from theft." Sec. 165(c)(3).
The parties agree that petitioners sustained a casualty loss
within the meaning of section 165(c)(3) during 1992. Respondent,
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