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how would i do this.? Olaf lives in the state of Minnesota. In May 2022, a tornado hit the area and damaged his home and
how would i do this.?
Olaf lives in the state of Minnesota. In May 2022, a tornado hit the area and damaged his home and automobile, Applicable information is as follows: Because of the extensive damage caused by the tornado, the President designated the area a Federal disaster area. Olaf and his wife, Anna, always file a joint return. Their 2021 tax return shows AGI of $180,000 and taxable income of $145,000. In 2022, their return shows AGI of $300,000 and taxable income (exclusive of the casualty loss deduction) of $245,000. Assume the taxpayers are in the 22% tax bracket in 2021 and the 24% tax bracket in 2022. Determine the amount of Olaf and Anna's loss and the year in which they should take the loss. Item Home Amount of Loss Auto Total loss Less: statutory floor amount Loss before statutory % of AGI Amount of loss on last year's return: Loss Less: statutory % of AGI Total loss Amount of loss on current year's return: Loss Less: statutory % of AGI Total loss Step by Step Solution
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