Martin Marietta Corp. v. United States

OPINION

WIESE, Judge.

The question presently before the court in this multi-issue tax refund suit is whether plaintiffs, owners of a limestone bearing property, are entitled to a casualty loss deduction for the value of the mineral in place when exploratory drilling reveals groundwater of unanticipated volume that (i) floods a portion of the property and (ii) induces abandonment of mining operations on the remainder because of economic im-practieality. We conclude that a casualty loss deduction is allowable only to the extent of the loss in market value attributable to the property actually…