In 2017, Laura loaned $5,000 to Joshua, who agreed to repay the loan in two years. Let us assume that this is a business debt. In 2018, Joshua filed for personal bankruptey. At that time, Laura learned that unsecured creditors (including Laura) were ultimately expected to receive 25 cents on the dollar. In 2019, settlement is made, and Laura receives only a $1. How much can Laura deduct in 2019? 2 John files a return as a single taxpayer. In 2019, he had the following items: Salary of $70,000 Loss of $65,000 on the sale of 1244 stock acquired two years ago from a small business corp. Interest income of $6,000 from City of Boston bonds. In 2019, John had the following insured personal casualty items arising from one casualty in a Federally declared disaster area). Assume these losses are from one casualty event and before deducting the $100 floor. Adiusted Basis 12,000 6,000 3.700 Fair Market Value Before $10,000 5.000 1.700 After $2,000 -- Insurance Recovery $2.000 5,000 900 What amount is John's casualty deduction for 2019 and is it a deduction for AGI or an itemized deduction? In 2019, Wally had the following insured personal casualty items arising from one casualty in a Federally declared disaster area), Wally also had $40,000 AGI for the year before considering the casualty. Fair Market Value Asset Adjusted Basis Before After Insurance Recovery 59.200 $8.000 1.000 $2,000 4.0000- 4.000 In 2017, Laura loaned $5,000 to Joshua, who agreed to repay the loan in two years. Let us assume that this is a business debt. In 2018, Joshua filed for personal bankruptey. At that time, Laura learned that unsecured creditors (including Laura) were ultimately expected to receive 25 cents on the dollar. In 2019, settlement is made, and Laura receives only a $1. How much can Laura deduct in 2019? 2 John files a return as a single taxpayer. In 2019, he had the following items: Salary of $70,000 Loss of $65,000 on the sale of 1244 stock acquired two years ago from a small business corp. Interest income of $6,000 from City of Boston bonds. In 2019, John had the following insured personal casualty items arising from one casualty in a Federally declared disaster area). Assume these losses are from one casualty event and before deducting the $100 floor. Adiusted Basis 12,000 6,000 3.700 Fair Market Value Before $10,000 5.000 1.700 After $2,000 -- Insurance Recovery $2.000 5,000 900 What amount is John's casualty deduction for 2019 and is it a deduction for AGI or an itemized deduction? In 2019, Wally had the following insured personal casualty items arising from one casualty in a Federally declared disaster area), Wally also had $40,000 AGI for the year before considering the casualty. Fair Market Value Asset Adjusted Basis Before After Insurance Recovery 59.200 $8.000 1.000 $2,000 4.0000- 4.000