In 2019, the Rinaldis vacation cottage was severely damaged by an earthquake in a location that was
Question:
In 2019, the Rinaldis’ vacation cottage was severely damaged by an earthquake in a location that was a presidentially declared disaster area. They had AGI of $110,000 in 2019. Following is information related to the cottage:
Cost basis...................................................$95,000
FMV before casualty.................................135,000
FMV after casualty.......................................20,000
The Rinaldis had insurance and received an $80,000 insurance settlement. What is the amount of allowable casualty loss deduction for the Rinaldis in 2019before the AGI and event limitation?
a. $ 3,900
b. $14,900
c. $15,000
d. $45,000
Step by Step Answer:
Fundamentals Of Taxation 2020 Edition
ISBN: 9781260483147
13th Edition
Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler