Files >> III Algebra Videos LA County Departm... Camaro Parts!!! - au... eBook Print Item Discussion Question 7-12 (LO. 4) In 2021, Kelsey sustained a loss on the theft of a painting. She had paid $20,000 for the painting, but it was worth $40,000 at the time of the theft. What are the tax consequences of treating the painting as (a) investment property or as (b) personal use property? a. If the painting is treated as investment property, the loss is an itemized deduction not subject to the $100-per-event and the 10%-of-AGI limitations Before adjustments (if any), the loss is limited to the lesser of decline in fair market value or the adjusted basis the property at the time of destruction. of b. If the painting is treated as personal-use property, the loss is a non-miscellaneous itemized deduction subject to a 2%-of-AGI floor is limited to the fair market value of the property at the time of destruction Before adjustments (if any), the loss