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Mr. and Mrs. Marcum live in southern California in an area devastated by wildfires that the President designated a federally declared disaster. Because of fire
Mr. and Mrs. Marcum live in southern California in an area devastated by wildfires that the President designated a federally declared disaster. Because of fire damage, the Marcums had to replace the roof of their home at a cost of $55,000. Their homeowners insurance reimbursed them for only $32,500 of the cost. The Marcums' $22,500 unreimbursed loss was their only casualty loss this year. Assume the taxable year is 2022. Required: Compute their deductible casualty loss if their AGI is $163,000. Assume that the fire that damaged the Marcums' roof was attributable to faulty electrical wiring in their attic? Answer is complete but not entirely correct. Mr. and Mrs. Marcum live in southern California in an area devastated by wildfires that the President designated a federally declared disaster. Because of fire damage, the Marcums had to replace the roof of their home at a cost of $55,000. Their homeowners insurance reimbursed them for only $32,500 of the cost. The Marcums' $22,500 unreimbursed loss was their only casualty loss this year. Assume the taxable year is 2022. Required: Compute their deductible casualty loss if their AGI is $163,000. Assume that the fire that damaged the Marcums' roof was attributable to faulty electrical wiring in their attic? Answer is complete but not entirely correct
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