Reynaldo and Sonya, a married couple, had flood damage in their home due to a faulty water
Question:
Reynaldo and Sonya, a married couple, had flood damage in their home due to a faulty water heater during 2016, which totally ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable.
Damaged Items ____ Fair Market Value Just Prior to Damage__Original Item Cost (Basis)
Antique poster bed ……………………..$6,000………………………………..$5,000
Pool table………………………………...7,000………………………………..11,000
Flat screen TV……………………………..700…………………………………2,500
Their homeowner's insurance policy had a $10,000 deductible for the personal property, which was deducted from their insurance reimbursement of $12,700, resulting in a net payment of $2,700. Their AGI for 2016 was $40,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2016?
Step by Step Answer:
Fundamentals Of Taxation 2017
ISBN: 9781259752735
10th Edition
Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone