Rudolf Lewis Hoppe and Ann Erna Hoppe v. Commissioner of Internal Revenue

Rudolf L. Hoppe and Ann E. Hoppe, petitioners herein, filed a joint income tax return for the year 1959 in which they claimed a deduction for a casualty loss in the amount of $5,752.00 by reason of their discovery in that year of dry rot damage to their home in Richmond, California. The deduction was disallowed by the Commissioner of Internal Revenue, respondent herein, who assessed a deficiency in tax against petitioners in the sum of $1,222.96. Petitioners timely filed a petition with the Tax Court for a redetermination of this deficiency under 26 U.S.C. § 6213 . After a trial, the Tax Court rendered its decision in favor of the Commissioner and petitioners timely petitioned this court for a review of the decision of the Tax Court. We have jurisdiction under 26 U.S.C. § 7482 .

The facts as found by the Tax Court show that in 1959 petitioners owned a frame stucco residence in Richmond, California. This building was constructed in 1948 and petitioners have occupied it since that time. In November, 1959, petitioners contracted to have certain structural changes made, including the replacement of certain windows and the closing of a door. As a part of this work peti tioner Hoppe…