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Casualty Losses: Year of Deduction. Jerry sprayed all of the landscaping around his business with a pesticide in June 2 0 2 3 . Shortly
Casualty Losses: Year of Deduction. Jerry sprayed all of the landscaping around his business
with a pesticide in June Shortly thereafter, all of the trees and shrubs unaccountably
died. The FMV and the adjusted basis of the plants were $ Later that year, the pesticide manufacturer announced a recall of the particular batch of pesticide that Jerry used. It
also announced a program whereby consumers would be repaid for any damage caused by
the improper mixture. Jerry is single and reports $ AGI in and $ in
a Assume that in Jerry files a claim for his losses and receives notification that payment of $ will be received in Jerry receives full payment for the damage in
How should the loss and the reimbursement be reported?
b How will your answer to Part a change if in the manufacturer files for bankruptcy and Jerry receives $ in total and final payment for his claim?
c How will your answer to Part a change if the announcement and the reimbursement do
not occur until late in after Jerry has already filed his tax return for
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