- 7 - “fire, storm, shipwreck, or other casualty, or from theft.” Personal casualty or theft losses are deductible only to the extent that the loss exceeds personal casualty gains and $100 and, additionally, 10 percent of adjusted gross income. Sec. 165(h)(1) and (2). Casualty losses are deductible in the year the loss is sustained. Sec. 165(a); sec. 1.165-7(a)(1), Income Tax Regs. A casualty loss is treated as sustained during the taxable year in which the loss occurs as evidenced by “closed and completed transactions and as fixed by identifiable events occurring in such taxable year.” Sec. 1.165-1(d)(1), Income Tax Regs. The term “other casualty” in section 165(c)(3) is not expressly defined in either the statute or the regulations. This Court construes the term “other casualty” in section 165(c)(3) by applying the rule of ejusdem generis. Maher v. Commissioner, 76 T.C. 593, 596 (1981), affd. 680 F.2d 91 (11th Cir. 1982); Dodge v. Commissioner, 25 T.C. 1022, 1024 (1956). Under this rule of statutory construction, general words that follow the enumeration of specific classes are construed as applying to things of the same general class as those enumerated. Thus, in order for the loss to be deductible, the taxpayer must prove that the destructive event or happening was similar in nature to a fire, storm, or shipwreck. Accordingly, “other casualty” denotes “‘an undesigned, sudden and unexpected event’”, Durden v.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011