Ivan A. Jasko and Judith L. Jasko v. Commissioner

107 T.C. No. 3

UNITED STATES TAX COURT IVAN A. JASKO AND JUDITH L. JASKO, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 5553-95. Filed August 20, 1996. Ps' principal residence was destroyed by fire. They recovered insurance proceeds based on replacement cost, resulting in a gain. Ps incurred legal fees in obtaining recovery of those proceeds and claimed a deduction for the amount of those fees paid during the taxable year. Ps assert that the insurance policy was held for the production of income so that the deduction is allowable under sec. 212(1), I.R.C. Held, under…