Question
Taxpayer purchased a personal residence in 2017 for $266,000. The fair market value of the residence was $280,000 when it was damaged by a flood
Taxpayer purchased a personal residence in 2017 for $266,000. The fair market value of the residence was $280,000 when it was damaged by a flood on June 10, 2018 that resulted from not turning off the bath water before leaving for vacation. The fair market value of the residence after the flood was $240,000 and insurance proceeds totaled $15,000. What is the net amount of casualty loss Taxpayer may deduct for 2018 as an itemized deduction if Taxpayers adjusted gross income is $120,000? United States
a. 0 b. $25,000 c. $24,900 d. $8,500 e. $12,900
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