41- -
7. Claimed Section 165(i) Relief
Section 165(i)(1) provides that any loss attributable to a
disaster occurring in an area subsequently determined by the
President of the United States to warrant assistance by the
Federal Government under the Disaster Relief and Emergency
Assistance Act may, at the election of the taxpayer, be taken
into account for the taxable year immediately preceding the
taxable year in which the disaster occurred. If such an election
is made, the casualty resulting in the loss is treated as having
occurred in the taxable year for which the deduction is claimed.
Sec. 165(i)(2).
Section 1.165-11(e), Income Tax Regs., provides that an
election under section 165(i) must be made on or before the later
of: (1) The due date for filing the income tax return
(determined without regard to any extension of time for filing
the return) for the taxable year in which the disaster actually
occurred, or (2) the due date for filing the income tax return
(determined with regard to any extension of time for filing the
return) for the taxable year immediately preceding the taxable
year in which the disaster actually occurred.
Petitioners contended for the first time at trial that they
are entitled to relief under section 165(i) for their claimed
casualty losses resulting from the floods in 1991. Petitioners
did not address this issue in their brief.
Page: Previous 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 NextLast modified: May 25, 2011