Gene was the named executor of his friend Ken’s estate. During the administration of the estate, Ken’s home was completely destroyed by a one-of-a-kind mudslide, which is exceedingly rare in the state where the home was located. The President of the United States has officially declared the mudslide situs as a federal disaster area. The value of Ken’s home before the disaster was $5,769,000 and there is now a worthless hole in the ground where Ken’s house once stood. Ken’s homeowner’s insurance settled Gene’s executor claim for $4,715,000. On For 706,

Ken’s estate can claim a casualty loss deduction under Section 2054 amounting to:

Answer rating: 100% (QA)

To calculate the casualty loss deduction for Kens estate under Section 2054 we need to determine the ... View the full answer