Harvey and Florence Pulvers v. Commissioner of Internal Revenue

CHAMBERS, Circuit Judge.

Can taxpayers on their federal income tax return take a deduction for an “other casualty loss” when as a consequence of a nearby landslide that ruined three nearby homes, but did no physical damage to the property of taxpayers, with a resultant loss of value because of common fear the mountain might attack their resi dence and lot next? (There is yet no substantial impairment of ingress or egress on the street serving their home.) We agree with the tax court that they cannot.

Sec. 165, Internal Revenue Code of 1954 1 , so far as pertinent provides:

“Sec. 165. Losses.(a)…