Question
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 | Original Item Cost (Basis) |
---|---|---|
Antique poster bed | $ 8,600 | $ 6,300 |
Pool table | 8,625 | 14,575 |
Large flat-screen TV | 1,350 | 4,775 |
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?
Casuality loss deduction _____
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