Virginia has a casualty gain of $5,000 and a casualty loss of $2,500, before reduction by the $100 floor. The gain and loss were the

Question

52 users unlocked this solution today!

Virginia has a casualty gain of $5,000 and a casualty loss of $2,500, before reduction by the $100 floor. The gain and loss were the result of two separate casualties, and both properties were personal-use assets. What is Virginia’s gain or loss as a result of these casualties?

a. $5,000 capital gain and $2,500 capital loss
b. $5,000 capital gain and $2,400 itemized deduction, subject to the 10 percent of adjusted gross income limitation
c. $5,000 capital gain and $2,500 itemized deduction, subject to the 10 percent of adjusted gross income limitation
d. $5,000 capital gain and $2,400 capital loss
e. None of the above