Olaf lives in the state of Minnesota. In May 2022, a tornado hit the area and damaged
Question:
Olaf lives in the state of Minnesota. In May 2022, 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 Federal disaster area.
Olaf and his wife, Anna, always file a joint return. Their 2021 tax return shows AGI of $180,000 and taxable income of $145,000. In 2022, their return shows AGI of $300,000 and taxable income (exclusive of the casualty loss deduction) of $245,000. Determine the amount of Olaf and Anna’s loss and the year in which they should take the loss.
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The amount of the loss before the 10ofAGI limitation is computed as follows Because the Presid...View the full answer
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Related Book For 
South Western Federal Taxation 2023 Comprehensive Volume
ISBN: 9780357719688
46th Edition
Authors: Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young
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