In the current year, Wilson Enterprises, a calendar year taxpayer, suffers a casualty loss of $162,500. How much of the casualty loss will be deductible by Wilson under the following circumstances?

a. Wilson is an individual proprietor and has AGI of $406,250. The casualty loss was a personal loss, and the insurance recovered was $89,375 before any limitations.

Wilson can claim a casualty loss as an itemized deduction of $.

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When examining how corporations are treated under the Federal income tax, a useful approach is to compare their treatment with that applicable to individual taxpayers. A casualty is the loss of property (including damage and destruction) because of a sudden event. The event must be identifiable, unexpected, and unusual.

b. Wilson is a corporation, and the insurance recovered was $89,375 before any limitations.

Wilson can deduct $.