- 8 -
Helvering v. Owens, 305 U.S. 468 (1939); sec. 1.165-7(b), Income
Tax Regs.
The basis of property acquired by purchase is its cost.
Sec. 1012. The basis of property acquired by gift is the same as
it would be in the hands of the donor or the last preceding owner
by whom it was not acquired by gift. If such basis is greater
than the fair market value of the property at the time of the
gift, however, the basis for determining loss is the fair market
value of the property. Sec. 1015.
In order for the Court to determine whether petitioner is
entitled to a casualty loss, petitioner’s basis in the property
damaged or destroyed must be known. Where a taxpayer fails to
prove that basis, the Court is unable to determine the amount of
the loss that is deductible. Zmuda v. Commissioner, 79 T.C. 714,
727-728 (1982), affd. on other grounds 731 F.2d 1417 (9th Cir.
1984); Millsap v. Commissioner, 46 T.C. 751, 760 (1966), affd.
387 F.2d 420 (8th Cir. 1968).
Petitioner offered no evidence of either the fair market
value of the property at the time of the loss or his basis in the
items. Further, it appears that petitioner cannot meet the
requirement of section 165(h)(2) that the net casualty loss
exceed 10 percent of adjusted gross income.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011