FACTS: Appellant taxpayers attempted to take a deduction on their federal income tax returns for an "other casualty loss" when their property values fluctuated because several nearby homes were destroyed in a landslide. Appellee tax commissioner determined that appellants' had suffered no actual loss and therefore were not entitled to the deduction. The tax court affirmed appellee's determination, and appellants challenged the ruling. The court affirmed and held that congress did not intend "other casualty loss" to include such claims, otherwise the consequences would be limitless. The court held that the loss was hypothetical and that congress did not intend such a construction of the statute.
CONCLUSION: The court affirmed an order of the tax court which affirmed appellee tax commissioner's determination that appellant taxpayer's could not take a deduction for other casualty loss on their federal income tax return when nearby houses were destroyed by a landslide because appellants incurred no actual loss and a mere fluctuation in their properly values was not intended to be covered under the statute.
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