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residence. Photographs of the crack or cracks on the floors in
the family room and the master bathroom are in evidence.
The Atmore residence was under construction in 1997. The
Atmore residence was insured for earthquake damage from January
15, 1998, to January 15, 1999, but was not insured for such
damage during the period of construction in 1997.
The foundation of the Atmore residence had been completed
and was covered with sawdust and construction materials so that
any crack or damage to the foundation would not have been
noticeable to petitioners if they had made an inspection
immediately after the May earthquake. The Atmore residence was
complete as of the October earthquake. Petitioners observed the
crack or cracks after moving into the Atmore residence in early
1998. Petitioner made his own estimate of the decrease in fair
market value of the Atmore residence after the 1997 earthquakes.
The Court held the record open for 30 days following the trial to
allow petitioner to introduce into evidence an Escambia County
Tax Assessor’s appraisal (the assessor’s appraisal) in
petitioners’ possession that petitioner claimed was consistent
with his estimate of the reduction in the fair market value of
the Atmore residence. Petitioners did not introduce the
assessor’s appraisal into evidence.
Petitioners made a timely election under section 165(i) to
make a claim on their 1997 return for a casualty loss in value of
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