ly designated a disaster area by the President. Explain when the loss could The couch had been damaged and M had it reupholstered for $700. The insurance company reimbursed her for the amounts shown on December 27. Under M's in- surance policy, the company did not reimburse her for loss on the car until 45 days had passed. M expected to recover $4,000 but, after several delays, finally received a check for $2.000 on April 25, 2020. While she was waiting for reimbursement for her van, she rented a car at a total cost of $700. Although M received value for the coat, she did not replace it. In addition to the losses shown above, her real estate broker advised that even though her house had not been damaged by the flood, the value had dropped by $20,000 since it was evident that it was located in an area a. Compute M's casualty loss deduction, assuming her AGI in 2019 was $18,000 b. Assume the loss occurred on January 2, 2020, and the location was official 10-15 Personal Casualty. When the waters of the Mississippi began to overflow their banks and flood the surrounding area. M was forced to leave her home and head for higher ground. The flooding was identified as a federally declared disaster. On December 2, she returned to her home to find that it had been vandalized as well as damaged from the flood. After cleaning up, she determined that the following items had been stolen or damaged: Insurance Item Adjusted Basis FMV Before FMV After Reimbursement Fur coat. $6,000 $7,000 $0 $7,000 Computer 4,000 3,000 0 Uninsured Couch 1,200 800 See below Van 7,000 5,000 500 prone to flooding. and in 2020, $20,000. be deducted. ly designated a disaster area by the President. Explain when the loss could The couch had been damaged and M had it reupholstered for $700. The insurance company reimbursed her for the amounts shown on December 27. Under M's in- surance policy, the company did not reimburse her for loss on the car until 45 days had passed. M expected to recover $4,000 but, after several delays, finally received a check for $2.000 on April 25, 2020. While she was waiting for reimbursement for her van, she rented a car at a total cost of $700. Although M received value for the coat, she did not replace it. In addition to the losses shown above, her real estate broker advised that even though her house had not been damaged by the flood, the value had dropped by $20,000 since it was evident that it was located in an area a. Compute M's casualty loss deduction, assuming her AGI in 2019 was $18,000 b. Assume the loss occurred on January 2, 2020, and the location was official 10-15 Personal Casualty. When the waters of the Mississippi began to overflow their banks and flood the surrounding area. M was forced to leave her home and head for higher ground. The flooding was identified as a federally declared disaster. On December 2, she returned to her home to find that it had been vandalized as well as damaged from the flood. After cleaning up, she determined that the following items had been stolen or damaged: Insurance Item Adjusted Basis FMV Before FMV After Reimbursement Fur coat. $6,000 $7,000 $0 $7,000 Computer 4,000 3,000 0 Uninsured Couch 1,200 800 See below Van 7,000 5,000 500 prone to flooding. and in 2020, $20,000. be deducted
