Research Problem 4. Mary Marble took out a homeowners insurance policy on her residence. One of the
Question:
Research Problem 4. Mary Marble took out a homeowner’s insurance policy on her residence.
One of the policy provisions listed the insured’s duties with respect to a loss. This provision required the policyholder to give notice and required an inventory of damaged personal property within 60 days of the insurance company’s request and to supply proof of loss.
In November of the current year, Mary’s home was damaged by a fire. Shortly after the fire, Mary reported the loss to the insurance company. In December, the insurance company generated a claim report sheet with a claim number and sent Mary a proof of loss form. Mary failed to provide the insurance company with the proof of loss form within the required 60-day period; hence, the insurance company denied Mary’s claim for damages. Discuss whether Mary is entitled to a casualty loss deduction for the damage to her home caused by the fire.
Step by Step Answer:
South-Western Federal Taxation 2014 Corporations Partnerships Estates And Trusts
ISBN: 9781285424484
37th Edition
Authors: William H. Hoffman Jr., William A. Raabe, James E. Smith, David M. Maloney, James C. Young