Derrick owns a farm in eastern North Carolina. A hurricane hit the area (a national disaster area was declared) and destroyed a farm building and some farm equipment and damaged a barn.

Item Adjusted Basis FMV before Damage FMV after Damage Insurance Proceeds

Building $96,800 $132,100 $0 $61,500

Equipment86,100 64,900 0 24,200

Barn 135,400 194,900 135,400 53,400

Due to the extensive damage throughout the area, the president of the United States declared all areas affected by the hurricane as a disaster area. Derrick, who files a joint return with his wife, had $71,400 of taxable income last year. Their taxable income for the current year is $229,200, excluding the loss from the hurricane.

a-1.Calculate the amount of the loss deductible by Derrick and his wife.

a-2.What amount of loss should be adjusted against current and last year?

A1. Loss Amount

A.2 Last Year

Current Year

I know that the loss$103,300, but having issues with determining how much for last and current year.