During the year, Alicia's personal summer home was almost completely destroyed by a fire started in a work room. She had adjusted gross income of
During the year, Alicia's personal summer home was almost completely destroyed by a fire started in a work room. She had adjusted gross income of $110,000 in 2016 and related data with respect to the summer home follows:
| Cost basis: | $ | 121,000 |
| Value before casualty: | $ | 155,000 |
| Value after casualty: | $ | 15,000 |
Alicia was partially insured for the loss and in 2016 she received a $100,000 insurance settlement. What is Alicia's allowable casualty loss deduction for 2016?
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Authors: K. H. Spencer Pickett
1st Edition
0471969117, 978-0471969112
