Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2021, which was declared
Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2021, which was declared a Federally Designated Disaster Area. The flood damage ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable: Damaged Items FMV Just Prior to Damage $ 8,600 8,625 1,350 Original Item Cost (Basis) $ 6,300 14,575 4,775 Antique poster bed Pool table Large flat-screen TV Required: Their homeowner's insurance policy had a $11,755 deductible for the personal property, which was deducted from their insurance reimbursement of $16,275, resulting in a net payment of $4,520. Their AGI for 2021 was $47,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2021? Answer is complete but not entirely correct. Casualty loss deduction $ 6,305
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started