Question
10-17) This year, Cs jewelry, which costs $10,000, was stolen from her home. Luckily, she was insured and the insurance company reimbursed her for its
10-17) This year, Cs jewelry, which costs $10,000, was stolen from her home. Luckily, she was insured and the insurance company reimbursed her for its current value, $19,000. In addition, while she was on vacation all of her camera equipment was stolen. The camera equipment had cost her $3,500 and was worth $3,100. She received no reimbursement since she carried a large deductible on such items. Cs AGI for the year was $15,000.
a.) What is the effect of the casualty losses on Cs taxable income?
b.) Same as above except the jewelry was worth $11,000.
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