Case: Taxpayer Not Entitled to Casualty Loss Deduction (T.C. Summ.) (IRC §165)

Taxpayer was not entitled to a casualty loss deduction for damage to property he did not own, the U.S. Tax Court held, granting summary judgment to the IRS. Taxpayer, an individual, claimed a $49,500 casualty loss deduction on his 2017 tax return for hurricane damage to a property. The property had previously been owned by Taxpayer but was transferred to his adult daughters in 2012. The IRS disallowed the deduction and determined a deficiency. The Tax Court held that Taxpayer was not entitled to the casualty loss deduction because he did not own the property at the time of the ...