Tracy M. Colter and Robert N. Colter, Jr. - Page 6




                                        - 5 -                                         
          Replacement costs for all of the items total $83,830.66; actual             
          cash values (replacement cost minus depreciation) of all of the             
          items total $51,711.17.                                                     
               Some of the personal property located in the house at the              
          time of the fire appeared to be salvageable.  Petitioners hired             
          MasterCraft and MasterClean to clean and/or refurbish these                 
          items.  After removing these items from the Hendersonville                  
          residence, the cleaning company determined that some of them                
          could not be cleaned or otherwise salvaged.  The items that could           
          not be cleaned were not returned to petitioners and were not                
          included on the inventory.  Petitioners estimated the value of              
          these items to total $4,562.                                                
               Petitioners filed a timely joint 1995 Federal income tax               
          return.  It was prepared by a professional income tax return                
          preparer.  They reported adjusted gross income of $42,802.                  
          Taking into account itemized deductions totaling $29,516 and                
          personal exemption deductions claimed for themselves and their              
          four children, they reported no taxable income or Federal income            
          tax liability on that return.                                               
               Relevant here, on the Schedule A, Itemized Deductions,                 
          included with their 1995 return, petitioners claimed a $21,610              
          casualty loss deduction, computed as follows:                               










Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next

Last modified: May 25, 2011