24- -
the fair market value of the property immediately after the
casualty, or (2) the amount of the adjusted basis for determining
the loss from the sale or other disposition of the property
involved.
A. Rain and Wind Damage to Home and Personal Property in
1988
The parties agree that the heavy rain and wind which caused
damage to petitioners' home and its contents in 1988 was a
casualty within the meaning of section 165(c)(3). They also
agree that any loss resulting from the casualty was sustained in
1991 when the litigation between petitioners and FGIU was settled
with petitioners receiving a total recovery of $44,577.92, or a
net of $32,040 after payment of attorney's fees and expenses.
The dispute pertains primarily to the deductible amounts of the
claimed casualty losses in excess of the insurance recovery.
Petitioners claimed a casualty loss of $142,729 on their 1988
Federal income tax return. The claimed amount was revised to
$193,462, before insurance reimbursement, at the time of trial.
Petitioners contend that the evidence they submitted
supports their claimed losses. To the contrary, respondent
contends that petitioners have failed to prove they actually
sustained the claimed losses to their home and to many of the
items of personal property, but, if so, they failed to establish
the amounts of the losses.
We do not find persuasive the estimates of John Bernardi and
Kenny Hester regarding the extent of damage to petitioners' home.
Page: Previous 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 NextLast modified: May 25, 2011