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Business property is completely destroyed in a fire. The property was worth $5,000 before the casualty. The taxpayer's adjusted basis in the property was $7,000.

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Business property is completely destroyed in a fire. The property was worth $5,000 before the casualty. The taxpayer's adjusted basis in the property was $7,000. The insurance company reimbursed the taxpayer $3,000 for its loss. The taxpayer's casualty loss deduction for the property is: $2,000. $4,000. $1,900 $3,900. $0

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