Question
Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2019, which was declared
Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2019, 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 | $ | 9,800 | $ | 6,900 | ||||||
Pool table | 9,375 | 16,225 | ||||||||
Flat-screen TV | 1,650 | 5,825 | ||||||||
Required:
Their homeowner's insurance policy had a $12,565 deductible for the personal property, which was deducted from their insurance reimbursement of $17,925, resulting in a net payment of $5,360. Their AGI for 2019 was $38,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2019?
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