John A. Maher and Madeline K. Maher v. Commissioner of Internal Revenue

RONEY, Circuit Judge:

Taxpayers claimed a casualty loss deduction on their 1974 federal income tax return for the death of 22 coconut palm trees due to a disease known as “lethal yellowing.” The Tax Court disallowed the claim and assessed a deficiency. Contrary to taxpayers’ argument that the destruction of their trees was a deductible casualty loss under Section 165(c)(3) of the Internal Revenue Code of 1954, we affirm.

Background

Taxpayers John and Madeline Maher, husband and wife, purchased a home in Miami Beach, Florida in May 1974. On the property were 22 fully matured coconut palm trees.…