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tioners who decided to report as “Insurance or other reimburse-
ment” in part I of section B of Form 4684 an estimate of $27,000,
and not the settlement amount of $40,086 plus taxes and appropri-
ate fees that State Farm offered to petitioners at the end of
1994 in settlement of the automobile damage claim.
As for the instructions for Form 4684, we take judicial
notice of those instructions which are not part of the record in
this case. Those instructions explicitly state that if the
taxpayer is not sure whether part of the claimed casualty loss
will be reimbursed, the taxpayer may not deduct that part until
the tax year when it is reasonably certain that it will not be
reimbursed. The instructions for Form 4684 thus are totally
consistent with section 1.165-1(d)(2)(i), Income Tax Regs. In
addition, those instructions explicitly state that, in reporting
in part I of section B of Form 4684 the “Cost or adjusted basis”
of property used in a trade or business or for income-producing
purposes, it is necessary to deduct depreciation allowed or
allowable.
We conclude that Mr. Mitic’s contention that petitioners’
position in the 1994 joint return with respect to their claimed
casualty loss deduction was required by Form 4684 and the in-
structions for that form is without merit.
We shall now determine on the basis of the instant record
and the applicable law whether petitioners are entitled to the
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