- 45 -
the foundation or by more than 21 percent as a result of damage
to the exterior brick and the need to cover the brick with vinyl
siding.
Because the wreck on the beach lot has now been covered by
sand and the beach replenished by ocean tides and the beach
replenishment program of the City of Gulf Shores, Alabama, the
loss in value of the beach lot from erosion was not permanent and
is not a casualty loss. See Bidelspacher v. Commissioner, T.C.
Memo. 1980-538. Moreover, it is improbable the beach lot would
now be worthless as a result of beach erosion that has since been
remedied.
Further, the record contains no evidence, such as reduction
in value of similar houses as a result of similar damage, cost of
repairing similar damage, reduction in value of similar beach
lots as a result of beach erosion, cost of replenishing the lost
sand, etc. upon which we might exercise our judgment to estimate
the amount of the loss or losses in value from the 1997
earthquakes or Hurricane Georges12 under Cohan v. Commissioner,
39 F.2d 540 (2d Cir. 1930). See Williams v. United States, 245
12We have no confidence whatsoever that any amount of loss
we might estimate on the basis of cost of repairs would equal or
exceed the additional amount--$69,314--needed to reach the 10
percent of AGI threshold provided by sec. 165(h). See supra
notes 8 and 9 and accompanying text.
Page: Previous 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 NextLast modified: May 25, 2011