Jasko v. Commissioner
United States Tax Court
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.
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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 the origin of claim doctrine, Ps' residence was the source of their gain and the legal fees represented capital expenditures constituting a reduction in their gain and not…
1Opinion of the Court
OPINION
Tannenwald, Judge:
Respondent determined a deficiency-in petitioners’ 1992 Federal income tax in the amount of $6,225. The issue is whether petitioners may deduct legal fees paid during 1992 and incurred as a result of a dispute with their insurance carrier over the replacement cost of their residence, which had been destroyed by fire.
All section references are to the Internal Revenue Code in effect for the year in issue.
All the facts have been stipulated. The stipulation of facts and attached exhibits are incorporated herein by this reference.
At the time their petition was filed,…
2Cases cited14 opinions
- Neely v. CommissionerUnited States Tax Court · 1985
- United States v. GilmoreSupreme Court of the United States · 1963
- Woodward v. CommissionerSupreme Court of the United States · 1970
- United States v. Hilton Hotels Corp.Supreme Court of the United States · 1970
- Central Tablet Manufacturing Co. v. United StatesSupreme Court of the United States · 1974
9 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Ivan A. Jasko and Judith L. Jasko v. CommissionerUnited States Tax Court · 1996
- Jasko v. CommissionerUnited States Tax Court · 1996