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Petitioner claims a casualty loss deduction in the amount of
$72,708.01 constituting one-half of the damages to his residence
(since he jointly owns the home with another individual) and all
the damages to his personal property from an earthquake in 1994.
Although petitioner has not provided any reliable appraisals with
regard to the fair market values of the damaged property,7
petitioner has provided the Court with several proposals and
contracts describing the estimated costs for repairs to his
personal residence and various insurance checks made out to the
order of petitioner and the other joint owner.8 Petitioner,
however, has failed to support the proposals and contracts with
other documentary evidence9 showing that the repairs were
actually undertaken and the contract amounts paid.10 We
7 At trial, petitioner introduced an appraisal for his
personal property which was admitted into evidence. After
reviewing the document more closely, we do not place any weight
on the opinions expressed in that document.
8 Petitioner also submitted a document describing $2,000
worth of repairs for a piano allegedly damaged in the 1994
earthquake. We are unable to ascertain whether this document
purports to be an estimate or a receipt for services rendered.
9 Although we do not expect petitioner to be familiar with
the intricacies of the tax law, we do expect petitioner, a law
school graduate, to at least present some evidence of payment,
such as canceled checks.
10 In addition, sec. 1.165-7(a)(2)(ii), Income Tax Regs.,
requires the taxpayer to show:
(a) the repairs are necessary to restore the property
to its condition immediately before the casualty, (b)
the amount spent for such repairs is not excessive, (c)
the repairs do not care for more than the damage
(continued...)
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