- 17 -
On or about December 6, 1987, petitioners filed a claim with
their insurance company for damage caused by the sewer backup.
Petitioners received $48,480 in satisfaction of their claim. On
or about December 16, 1987, petitioners filed a second claim with
their insurance company for flood damage caused by rain. The
insurance company paid petitioners $75,200 to satisfy their
second claim. On or about June 15, 1988, petitioners filed the
third claim for alleged vandalism that caused interior damage to
their home. Petitioners received $135,626 in satisfaction of
that claim.
Finally, petitioners filed an insurance claim for
loss of corporate papers in connection with the floods.
Petitioners received $25,000 in satisfaction for corporate
records stored in a portion of their residence leased to one of
their corporations. The loss of the corporate papers was not
covered under petitioners’ homeowner’s policy.
Petitioners reported on their 1986 Schedule C gross receipts
of $163,001 and deductions for: Insurance--$100, mortgage
interest--$69,860, taxes--$340, and contract labor expenses--
$69,850. Petitioners’ reported, on their 1989 Schedule C gross
receipts of $72,817 and deductions for: Insurance--$7,945,
mortgage interest--$65,639, taxes--$8,050, and repairs--$14,490.
Petitioners’ attorney, Mr. Handel, believed that the
settlement agreements with the financial institutions provided
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: May 25, 2011