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Julie, who is single has the following items for 2010: Salary - $100,000 A hurricane completely destroyed Julie's duplez during the current year. Julie lived
Julie, who is single has the following items for 2010: Salary - $100,000 A hurricane completely destroyed Julie's duplez during the current year. Julie lived in one-half of the duplex and rented out the other half. Julie paid $400,000 for the duplex and has taken $80,000 of cost recovery on the rental portion of the duplex. The duplex was worth $420,000 at the time of destruction. Julie's insurance policy paid her 90% of the fair market value of the duplex. Household items destroyed in the hurrican had a basis of $15,000 and a fair market value of $8,500. There was no insurance recovery on the household items. Julie purchased a painting three years ago for $4,000. Ath the time of the hurricane, the paiting was worth $10,000. Julie purchased the painting as an investment with the itent that she would sell it when its value exceeded $12,000. There was no insurance recovbery on the painting. Home mortgage interst - $10,000. Determine the amount of Julie's taxable income for the current year
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