Ambrose v. United States

OPINION

ALLEGRA, Judge:

In this tax refund suit, plaintiffs claimed a casualty loss deduction under section 165 of the Internal Revenue Code of 1986 (the Code) based on the loss of their home to a fire. Although their home was insured, plaintiffs failed to file, on a timely basis, documentation required by their policy, and coverage was denied. Plaintiffs challenged that denial in court, but lost. They then took the deduction in question on their Federal income tax return. At issue is whether plaintiffs’ failure to provide timely proof of then- loss to their insurer prohibited them from…