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maintained as permanent open space. See id. at 724. Such
irreversible changes in the character of the neighborhood were
found to effect a permanent devaluation and to constitute a
casualty within the meaning of section 165(c)(3). See id. at
727.
However, as explicated above, this Court has long
consistently held that an essential element of a deductible
casualty loss is physical damage or, in some cases, physically
necessitated abandonment. Furthermore, under the rule set forth
in Golsen v. Commissioner, 54 T.C. 742, 756-757 (1970), affd. 445
F.2d 985 (10th Cir. 1971), we are in any event constrained to
apply the law of the court in which an appeal would normally lie.
Since the Court of Appeals for the Ninth Circuit has adopted and
has not diverged from a requirement of physical damage for a
section 165(c)(3) deduction, to hold otherwise would contravene
Golsen.
Moreover, we further note that petitioners’ circumstances do
not reflect the type of permanent devaluation or buyer resistance
which would be analogous to that held deductible in Finkbohner v.
United States, supra. The evidence in the instant case reveals
that media and onlooker attention has in fact lessened
significantly over the years following the murders. Access to
petitioners’ property is no longer restricted by media equipment
or police barricades. Residents of Brentwood Park have continued
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