Wilbur DuVal has an apartment full of antique furniture. A fire in the apartment destroys a large part of his furnishings. The destroyed furnishings had a fair market value of $40,000, and Wilbur’s original basis in the furnishings was $33,750. He recovers $13,000 from his insurance company. Wilbur’s adjusted gross income for 2014 is $43,000. Use Form 4684 on Page 543 to report Wilbur’s loss.
Answer to relevant QuestionsIn 2014, Margaret and John Murphy (both over age 65) are married taxpayers who file a joint tax return with AGl of $25,000. During the year they incurred the following expenses: Medical insurance ...Janet needs an elevator seat attached to her stairs since she has a medical condition that makes her unable to climb the stairs in her house. The $10,000 spent on the elevator seat does not increase the value of her house ...In 2014, Gale and Cathy Alexander hosted an exchange student, Axel Muller, for 9 months. Axel was part of International Student Exchange Programs (a qualified organization). Axel attended tenth grade at the local high ...What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim the earned income credit? Please speculate as to why there is an investment income limit in the tax ...1. Russ and Linda are married and file a joint tax return claiming their three children, ages 4, 7, and 18, as dependents. Their adjusted gross income for 2014 is $105,300. What is Russ and Linda’s total child credit for ...
Post your question