- 2 - determined for petitioners’ 2001 taxable year. The sole issue before the Court is whether petitioners are entitled to a theft loss deduction for the 2001 taxable year. FINDINGS OF FACT Some of the facts have been stipulated, and the stipulated facts and accompanying exhibits are hereby incorporated by reference into our findings. Petitioners, husband and wife, resided in Tijeras, New Mexico, when they filed their petition. In September 1994, petitioners and James Green (Mr. Green) entered into a preconstruction agreement for the construction of a new house. Mr. Green hired Max Cabber (Mr. Cabber) to draw plans and assist in the design of petitioners’ house. On February 3, 1995, petitioners contracted with Mr. Green for the construction of a $190,900 house.1 Construction of petitioners’ house was completed on August 4, 1995, and petitioners moved in that same day. Sometime thereafter, petitioners began noticing problems with their new house. Those problems escalated and became a living nightmare, despite various repair efforts by Mr. Green and the subcontractors. On May 12, 1999, petitioners filed a civil lawsuit in the Second Judicial District Court of Bernalillo County, New Mexico (State court) against Mr. Green and several 1 That contract was later revised as the result of change orders. The total amount ultimately paid to Mr. Green was $196,183.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 NextLast modified: March 27, 2008