George Johnson drove his car out onto a frozen lake and parked the car in order to watch an ice boat race. The ice weakened and his car fell through the ice and was submerged in the lake. Issues: Can Taxpayer George Johnson claim a casualty loss deduction for damage to his automobile sustained when the auto fell through a frozen lake? Does the auto falling through the ice constitute a casualty under the federal income tax law? Would the loss be deductible as a personal or business casualty in 2022 under current tax law if the car fell through the ice in 2023? 

Answer rating: 100% (QA)

Taxpayer George Johnson may be able to claim a casualty loss deduction for the damage to his automob... View the full answer