During 2014, someone broke into Jacob's personal residence and took the following items:

Jacob is an employee and used the computer 100% of the time in his employment. Although his homeowner's insurance policy paid Jacob $7,000 for the stolen computer, Jacob's employer did not reimburse Jacob for any of the remainder of his loss. Jacob's AGI for the year, before considering any of the above items, is $50,000. Determine the total deduction for the stolen items on Jacob's 2014 tax return?

Transcribed Image Text:

Adjusted Insurance FMV before FMV after Recvery 7,000 18,000 Asset Basis Business computer 12,000 30,000 7,000 8,000 Bearer bonds Silverware Cash $10,000 25,000 20,000 8,000