Question
Jessica was involved in an auto accident. Her car and the car she hit were damaged. Jessica paid $20,000 for her car three years ago.
Jessica was involved in an auto accident. Her car and the car she hit were damaged. Jessica paid $20,000 for her car three years ago. Prior to the accident her car was worth $10,000; after the accident it was worth $6,100. Jessica paid $2,000 to repair the other person's car. Although Jessica had insurance, she decided not to file a claim for fear of her insurance being dropped. Had she filed a claim, Jessica would have received $3,000 from the insurance company for her loss. If this was Jessica's only casualty or theft during the year, the amount of her casualty and theft loss (before taking out the AGI floor) is:
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