Question

in 2021, kiana's house boat was destroyed by a storm in a region that was declared a federal disaster area by the president. she had purchased the boat in 2017 for $65,000. on what form(s) will kiana report this loss?

Answer 1

Kiana will report under the head of natural disaster and its compensation amount is also exempt.

• In income tax, there are a total of five heads of income viz

1. income from salary
2. Income from house property
3. Income from profits and gain of business or profession
4. Income from capital gains
5. Income from other sources

• Each head of income describes different features of income that are taxable.
• Income tax is a tax levied on income or profits received by an individual or entity. Income tax is usually calculated as the product of tax rate and taxable income.
• Tax rates vary depending on the type and characteristics of the taxpayer and the type of income.

Thus, Kiana's loss results from a natural disaster that is exempt under section 10(10BC).

To know more about income tax refer : brainly.com/question/26316390

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