Need help contact me!
2 answers:
You might be interested in
Answer:
The answer is the casualty loss deductible is $44,900
Note: Kindly find an attached copy of the complete question stated above
Sources: the complete question was researched from Course hero site
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
