Refer to the preceding problem. How would your answers change if the fire that damaged the Marcums’ roof was attributable to faulty electrical wiring in their attic?

Assume the taxable year is 2018.

Data from Prob. 24

Mr. and Mrs. Marcum live in Southern California in an area devastated by wildfires that President Trump designated a federally declared disaster. Because of fire damage, the Marcums had to replace the roof of their home at a cost of $55,000. Their homeowners insurance reimbursed them for only $32,500 of the cost. The Marcums’ $22,500 un-reimbursed loss was their only casualty loss this year.