Olaf lives in the state of Minnesota. A tornado hit the area and damaged his home and automobile. Applicable information is as follows:
Because of the extensive damage caused by the tornado, the President designated the area a disaster area.
Olaf and his wife, Anna, always file a joint return. Their return for last year shows AGI of $180,000 and taxable income of $140,000. For the current year, their return shows AGI of $300,000 and taxable income (exclusive of the casualty loss deduction) of $215,000.
Determine the amount of Olaf and Anna's loss and the year in which they should take the loss.

  • CreatedMay 25, 2015
  • Files Included
Post your question