Charles W. P. Kamanski and Robin Kamanski v. Commissioner of Internal Revenue

MERRILL, Circuit Judge:

The question presented is taxpayers’ right to a casualty loss deduction under § 165(c)(3) of the Internal Revenue Code of 1954, by virtue of loss in property value following an earthslide.

The slide occurred a short distance from taxpayers’ residence. It did minor physical damage to their property but as a consequence the market value of the property was reduced by approximately $23,000. Loss in property value in the sum of $21,094.27 was realized by taxpayers in disposing of their property. This was the amount they had invested and the value of the equity they enjoyed…