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than 10 percent of petitioner’s recomputed adjusted gross income
for the year at issue.7
Petitioner has failed to meet the minimum dollar amount
threshold required to deduct a casualty loss.8 Since
petitioner’s net expense does not exceed the limitations under
section 165(h), petitioner is precluded from deducting any of the
net expense incurred. Accordingly, petitioner is not entitled to
a casualty loss deduction applying the cost of repairs approach.
To reflect the foregoing,
Decision will be entered
under Rule 155.
7 We recomputed petitioner’s adjusted gross income to be
$28,919.35, 10 percent of which is $2,892. See supra p. 16.
8 Assuming, arguendo, that petitioner had corroborated
$4,000 of expense, the casualty loss deduction after the sec.
165(h) limitations would be reduced to such a small amount that,
when added to the other items claimed on Schedule A, petitioner’s
total itemized deductions would be less than the standard
deduction for the year at issue.
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