On June 14 of the tax year, Selena's sailboat sank off the coast of California due to a terrible storm. The fair market value of the sailboat before the casualty was $49,000. She bought the boat ten years earlier for $24,000. Her insurance company reimbursed her $39,000. On December 23 of the tax year, she purchased a smaller sailboat for $28,000. What is her recognized (taxable) gain for the year of the casualty?

$39,000

$15,000

$11,000

$0

On July 11, 2020, Jared's mobile home was totally destroyed in a federally declared major disaster. On November 15, 2020, Jared's insurance company reimbursed him $12,000 for the mobile home. If Jared has a gain, when does the replacement period for the mobile home end?

31-Dec-20

31-Dec-21

31-Dec-24

31-Dec-23

When a casualty loss occurs for residential real property that is part personal-use and part business-use:

Complete Form 4684, Section A only.

Compute the casualty as if it were two separate losses.

Complete Form 4684, Section B only.

Enter the entire amount first on Form 4797, and then carry the appropriate entries to Schedule D.