Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break

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Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2018, which was declared a Federally Designated Disaster Area., which totally ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable.


Damaged Items


Fair Market Value Just Prior to Damage

Original Item Cost (Basis)

Antique poster bed


$6,000


$5,000


Pool table


7,000


11,000


Flat screen TV


700


2,500



Their homeowner’s insurance policy had a $10,000 deductible for the personal property, which was deducted from their insurance reimbursement of $12,700, resulting in a net payment of $2,700.  Their AGI for 2018 was $50,000.  What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2018?

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Related Book For  answer-question

Fundamentals Of Taxation 2019

ISBN: 9781260158670

12th Edition

Authors: Ana M. Cruz Dr., Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone

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