William C. Dosher v. United States of America (Internal Revenue Service)

POLITZ, Circuit Judge:

This appeal poses the question whether a taxpayer may deduct as a casualty loss money paid to compensate another for damage to property caused by the taxpayer’s negligence. The district court, 573 F.Supp. 99, rejected the arguments of the taxpayer. We affirm.

Background

Laurine L. Dosher accidentally drove her automobile into the home of the H.S. Bennetts of Waco, Texas, causing $22,000 damage to the house and its contents. The Dosher liability insurer paid its policy limits of $10,000 and Laurine Dosher and her husband William C. Dosher paid the $12,-000 balance. The…