36- -
4. April Flood
With respect to the April flood damage to petitioners' home
and its contents, an insurance adjuster for ABIC determined, and
ABIC paid to petitioners, insurance reimbursement of $39,059.91,
consisting of $27,372.91 for damage to the home and $11,687
reimbursement for damage to its contents. On their 1991 Federal
income tax return petitioners claimed a loss of $143,064.34,
before insurance reimbursement, for damage to their home caused
by the April flood. At trial, they reduced the claimed loss to
$99,383.28, before insurance reimbursement, consisting of a
$79,863.28 loss claimed for damage to their home and a $19,520
loss claimed for damage to its contents.
Respondent contends that petitioners have failed to
establish that the amount of the April flood loss is either the
amount claimed on their 1991 return or the reduced amount claimed
at trial.
Petitioners failed to establish by competent appraisal the
fair market value of their home and personal property before and
after the April flood. It is petitioners' position that the cost
to repair their home is the measure of its decrease in fair
market value as a result of the damage caused by the April flood.
Petitioners calculated the $79,863.28 claimed loss to their
home by totaling the amount they claim to have spent repairing
their home as a result of the April flood. Their evidence does
not substantiate the amount claimed. The total amount of a
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