H and W recover $14,000 from their insurance company when their car, used solely for personal purposes, is totaled by a falling treeduring a hurricane (which the President of the United States lawfully declared a federal disaster). They paid $18,000 for the car twoyears ago; before the storm, its fair market value was $14,100, will this affect their taxable income? include code citations.

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In the United States when personal property such as a car is destroyed or damaged due to an unexpect... View the full answer