- 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
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