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 2017, 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 2017 was $50,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2017?
Step by Step Answer:
Fundamentals Of Taxation 2018
ISBN: 9781259713736
11th Edition
Authors: Ana M. Cruz Dr., Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler