Answer:
The answer is the casualty loss deductible is $44,900
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Explanation:
Solution
Given that
Home purchased by Irina =$250,000
House worth before fire incident = $500,000
Worth of house after fore incident =$200,000
The proceeds received from insurance = $200,00
Now what amount an Irina deduct in 2020 as a result of her loss
Thus
Irina has to be allowed casualty loss deduction:
                                                                Personal
(1) Adjusted basis before disaster        $250,000
(2) FMV before casualty                        $500,000
     FMV after damage                            $200,000
(3) Decrease in EMV                              $300,000
     Loss smaller a line                            $250,000
     Less insurance proceed                   $-200,000
     Less: $100 floor for each asset       -$100
     Less: 10% of AGI (500000 * 10%)    -$5000
     The casualty loss deductible            $44,900
Hence the casualty loss deductible is $44,900
Note:
FMV =Fair market value
AGI =Adjusted gross income
EMV =Ending market value