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charitable contributions but in a total amount considerably less
than the standard deduction. On the line for “Casualty and Theft
Losses”, petitioner wrote “-0-”.
C. Petitioner’s Amended Return for 1989
In February 1991, petitioner filed Form 1040X, Amended U.S.
Individual Income Tax Return, for 1989 (the amended return). On
the amended return, petitioner claimed a refund of $2,958 based
on: (1) An alleged casualty or theft loss of personal-use
property in the amount of $6,675 (before application of section
165(h)(1) or (2)(A)); and (2) an alleged casualty or theft loss
of business-use property in the amount of $15,156. By way of
explanation, petitioner included the following statement on his
amended return:
Taxpayer suffered uninsured theft and water damage
casualty losses on personal property and business
personal property that taxpayer was holding in storage
due to lack of residential space and office space.
Apparently landlord, his agents or previous tenants
used a key to obtain entry and remove items and either
landlord, his agents or tenants from the building the
storage area was attached to used the roof for purposes
not intended causing the roof to leak which caused
heavy damage to taxpayer’s property stored in such
building and landlord’s insurer would not pay for the
losses.
To support his claim, petitioner attached Form 4684,
Casualties and Thefts, to his amended return. Form 4684 reveals
that petitioner computed the claimed losses in the following
manner:
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