- 30 -
caused by Hurricane Danny,8 the 1997 earthquakes, and Hurricane
Georges.9 Respondent examined petitioners’ 1997 return and made
adjustments. Casualty losses to the bay house are not at issue.
The casualty losses claimed by petitioners and respondent’s
adjustments are as follows:
Natural Property Claimed Allowed by
Disaster Date Affected Loss Respondent
Hurricane 7/19/97 Bay house $22,943 - 0 -
Danny
Earthquake 5/3/97 Atmore residence 300,000 - 0 -
tremors 10/24/97
Hurricane 9/30/98 Atmore residence 211,504 - 0 -
Georges Bay house 50,000 $80,000
Beach lot 92,000 - 0 -
Total 676,447 80,000
Total after $100 limit for
each casualty 676,147 79,900
Total after 10 percent adjusted
gross income (AGI) limit
(AGI = $1,493,138) 526,833 - 0 -
8On their 1997 return, petitioners claimed a casualty loss
of $22,943 for damages to their bay house from Hurricane Danny.
Respondent determined petitioners failed to establish any loss in
excess of their insurance reimbursement. Petitioners conceded
respondent’s adjustment in their opening statement at trial.
9On their 1997 return, petitioners claimed a loss of $50,000
for damages caused by Hurricane Georges to a wharf and bulkhead
at their bay house. In the notice of deficiency, respondent
determined petitioners were entitled to a loss of $80,000 for
damages to their bay house. Petitioners do not contest this
determination. Petitioners are not entitled to deduct the
casualty loss of $80,000 because it does not exceed $149,314, 10
percent of petitioners’ 1997 adjusted gross income, as provided
by sec. 165(h).
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