RESEARCH PROBLEM

$($from South$-$Western Federal Taxation$)$

Facts: George Johnson drove his car out onto a frozen lake and parked the car in order to

watch an ice boat race. The ice weakened and his car fell through the ice and was submerged in

the lake.

Issues: Can Taxpayer George Johnson claim a casualty loss deduction for damage to his

automobile sustained when the auto fell through a frozen lake? Does the auto falling through

the ice constitute a casualty under the federal income tax law? Would the loss be deductible as

a personal or business casualty in $2022$ under current tax law if the car fell through the ice in

$2023?$

$($A Revenue Ruling is the likely the authority needed.$)$