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During the current year, Rulon's toilet overflowed due to a pipe breaking during a nationally declared earthquake disaster. Rulon was at work when the earthquake
During the current year, Rulon's toilet overflowed due to a pipe breaking during a nationally declared earthquake disaster. Rulon was at work when the earthquake hit, and by the time he returned, the water had flooded the basement, causing damage to the carpet, walls, and ceiling. The cost of repairing the damage was $9,000. Rulon has homeowners insurance that will cover half of the damage. However, because he has already had claims this year, Rulon does not want to report the incident to his insurance company for fear of a large increase in insurance rates. Instead, Rulon wants to deduct the loss as a casualty loss on his tax return. His AGI for this year is $50,000, and he has other itemized deductions of $6,000. Rulon is single. What amount of the casualty loss may he deduct? (Enter a "0" if none of the loss is deductible.) The amount of the casualty loss Rulon may deduct is
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