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A loss may be deducted only by the taxpayer who sustained
it. If the taxpayer is not the owner of the property, the
taxpayer generally cannot claim a deduction for a casualty loss
relating to that property. See Wayno v. Commissioner, T.C. Memo.
1992-53, affd. without published opinion 12 F.3d 1111 (9th Cir.
1993). This Court has held that petitioners held no legal or
equitable title to the Foxbriar property during either of the
years at issue. This includes the swimming pool located on the
Foxbriar property.
Moreover, the measure of a casualty loss, as provided by
section 1.165-7(b)(1), Income Tax Regs., is generally the lesser
of (1) the fair market value of the property immediately before
the casualty reduced by the fair market value of the property
immediately after the casualty, or (2) the amount of the adjusted
basis prescribed in section 1.1011-1, Income Tax Regs., for
determining loss from the sale or other disposition of the
property. The taxpayer bears the burden of proving the amount of
his basis. See Millsap v. Commissioner, 46 T.C. 751, 760 (1966),
affd. on other issues 387 F.2d 420 (8th Cir. 1968). A loss
cannot be computed where the taxpayer’s basis in the property is
not proven. See id.; Fisher v. Commissioner, T.C. Memo. 1986-
141; sec. 1.165-1(c), Income Tax Regs. Petitioners held no basis
in the Foxbriar property during 1991, the year in which the
damage to the swimming pool occurred. Moreover, the record is
devoid of any evidence that would tend to indicate petitioners
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