Question
Reynaldo and Sonya, a married couple, had flood damage in their home due to a faulty water heater during 2014, which totally ruined the furniture
Reynaldo and Sonya, a married couple, had flood damage in their home due to a faulty water heater during 2014, which totally ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable. |
Damaged Items | Fair Market Value Just Prior to Damage | Original Item Cost (Basis) |
Antique poster bed | $ 6,000 | $ 5,000 |
Pool table | 7,000 | 11,000 |
Large screen TV | 700 | 2,500 |
Their homeowner's insurance policy had a $10,000 deductible for the personal property, which was deducted from their insurance reimbursement of $12,700, resulting in a net payment of $2,700. Their AGI for 2014 was $40,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2014? |
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