Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Consolations Of Economics How We Will All Benefit From The New World Order

Authors: Gerard Lyons

1st Edition

0571307795, 9780571307791

More Books

Students also viewed these Accounting questions

Question

1. What is the distribution of B(s) + B(t), s t?

Answered: 1 week ago

Question

What would you do?

Answered: 1 week ago