Rebecca has a $6,400 casualty loss, before any limitations, as a result of the complete destruction of personal-use property. She also receives $1,200 of insurance proceeds for the destruction of a second item of personal-use property which was damaged in a separate casualty. The damaged property had a fair market value before the casualty of $2,000 and after the casualty of $700. The adjusted basis of the property was $500. Determine the amount and nature of Rebecca’s gain or loss as a result of these casualties.
Amount of gain or loss $ ______________
Nature ______________

  • CreatedJuly 16, 2015
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