Riley operates a plumbing business and this year the 3-year old van he used in the business was destroyed in a traffic accident. The van was originally purchased for $22,200 and the adjusted basis was $5,525 at the time of the accident. Although the van was worth $6,220 at the time of accident, insurance only paid Riley $1,475 for the loss. What is the amount of Riley's casualty loss deduction?

Answer rating: 100% (QA)

1 First determine the lesser amount between the adjusted basis of th... View the full answer