Olaf lives in the state of Minnesota A tornado hit the area and damaged his home and automobile Applicable information is as follows Because of the extensive damage caused by the tornado, the President designated the area a disaster area Olaf and his wife, Anna, always file a joint return Their 201...

The amount of the loss before the 10ofAGI limitation is computed as follows Home 350000 280000 70000 ...

Olaf lives in the state of Minnesota. A tornado hit the area and damaged his home and

Question:

Olaf lives in the state of Minnesota. A tornado hit the area and damaged his home and automobile. Applicable information is as follows:
Adjusted Insurance Proceeds FMV before FMV after Basis Item Home $350,000 60,000 $500,000 40,000 $100,000 10,000 $280,00

Adjusted Insurance Proceeds FMV before FMV after Basis Item Home $350,000 60,000 $500,000 40,000 $100,000 10,000 $280,00

Because of the extensive damage caused by the tornado, the President designated the area a disaster area.
Olaf and his wife, Anna, always file a joint return. Their 2016 tax return shows AGI of $180,000 and taxable income of $140,000. In 2017, their return shows AGI of $300,000 and taxable income (exclusive of the casualty loss deduction) of $215,000.
Determine the amount of Olaf and Anna€™s loss and the year in which they should take the loss.