Question
On the night of October 14, 20X14, a hurricane caused serious damage to Paiges personal vehicle and to the roof of her personal residence, a
On the night of October 14, 20X14, a hurricane caused serious damage to Paiges personal vehicle and to the roof of her personal residence, a townhome. Just prior to the hurricane, Paige had a $200,000 basis in her home and a $12,000 basis in her vehicle, which had a fair market value just prior to the hurricane of $10,000. The damage to the roof is appraised at $7,000 and the fair market value of the vehicle immediately after the hurricane is appraised at $5,000. Paige is uninsured and has a 20X14 AGI of $40,000. What amount of casualty loss deduction may Paige claim on her 20X14 tax return as a result of the hurricane?
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