In 2017, the Rinaldis vacation cottage was severely damaged by an earthquake. They had AGI of $110,000
Question:
In 2017, the Rinaldis’ vacation cottage was severely damaged by an earthquake. They had AGI of $110,000 in 2017. 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 2017 before the AGI and event limitation?
a. $ 3,900
b. $14,900
c. $15,000
d. $45,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamentals Of Taxation 2018
ISBN: 9781259713736
11th Edition
Authors: Ana M. Cruz Dr., Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler
Question Posted: