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Petitioner allocated $10,000 of insurance reimbursement to
the real property. At about the same time as the filing of the
1998 return, petitioner also filed a Form 1045, Application for
Tentative Refund. Petitioner sought to carry back the casualty
loss claimed on the 1998 return to the 1995 through 1997 tax
years. The application for tentative refund was denied by
respondent. Also, during the year 2000, petitioner submitted2 a
Form 1040X, U.S. Amended Individual Income Tax Return, for 1994.
In the Form 1040X, petitioner sought to reverse the claimed
casualty loss deduction of $95,311 on the theory that it was now
being claimed on the 1998 return and carried back to 1995.
Respondent’s position is that petitioner has not established
that the failure of the washing machine hose, and subsequent
damage, constitute a casualty within the meaning of section 165.
Respondent does not dispute that if a casualty occurred, 1998
would be the proper year to claim the loss. Respondent further
argues that even if a casualty occurred, that petitioner has not
presented sufficient evidence to prove the amount of the
casualty.
Discussion
2 The record does not reflect whether the Form 1040X for
1994 was filed, or whether a remittance was sent with the amended
return. Given respondent’s position in this matter, we assume
that petitioner did not receive the benefit of the casualty loss
deduction claimed on the 1994 return as originally filed and
after consideration of the Form 1040X revising the claimed
casualty loss deduction.
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