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claimed erosion are in evidence. Respondent disallowed
petitioners’ claimed loss in full.
Removal of sand on petitioners’ beach lot revealed the ribs
of a wrecked vessel on the property several yards from the
water’s edge (the wreck). The wreck was covered by sand before
Hurricane Georges and was almost fully visible for a period of
time after Hurricane Georges. The remains of the wreck included
rusted debris.
Petitioner did not recover sand from areas where it was
deposited by the storm as other property owners in the vicinity
had done and as he was permitted to do. The wreck has since been
covered by sand and the beach replenished by ocean tides and a
beach replenishment program of the City of Gulf Shores, Alabama.
Baldwin County changed the coastal construction setback line
after Hurricane Georges, thereby limiting the area on the beach
lot available for future construction of a new beach house.
OPINION
1. Burden of Proof
Petitioners generally bear the burden of proving their
entitlement to deductions for casualty losses. Rule 142(a);
Welch v. Helvering, 290 U.S. 111, 115 (1933).
Section 7491(a), which applies to examinations commenced
after July 22, 1998, places the burden of proof on the
Commissioner with regard to certain factual issues. The
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