The Squirt Company v. Commissioner of Internal Revenue

We have carefully considered Petitioner’s contentions in light of the well stated findings of fact and conclusions of law made by the Tax Court in the decision appealed from. Finding, as we do, that there was ample evidence to support the fact determinations, we conclude that the decision of the Tax Court should be affirmed on the basis of its opinion which is published at 51 T.C. 543 (1969). We would, however, add the following language from the opinion of the Court of Appeals for the Fifth Circuit dealing with the measure of a casualty loss resulting to the owner of citrus lands when an unexpected freeze occurs:

It is to be noted that, in the present case, the Commissioner allowed, and the Tax Court affirmed the allowance of, a deduction which represented the “rehabilitation expense necessary to return the land to a usable state” — a deduction which the Carloate court held to be appropriate. The Carloate ease is not authority for the allowance of a further deduction attributable to a general decrease in the value of the land in the general vicinity of the lands in question because of the fact that persons would be less likely to invest in citrus raising projects on account of…