- 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 providedPage: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011