On the night of October 14, 2016, a hurricane caused serious damage to Paiges personal vehicle and

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On the night of October 14, 2016, a hurricane caused serious damage to Paige’s personal vehicle and to the roof of her personal residence, a townhome. Just prior to the hurricane, Paige had a $200,000 basis in her home and a $12,000 basis in her vehicle, which had a fair market value just prior to the hurricane of $10,000. The damage to the roof is appraised at $7,000, and the fair market value of the vehicle immediately after the hurricane is appraised at $5,000. Paige is uninsured and has a 2016 AGI of $40,000. What amount of casualty loss deduction may Paige claim on her 2016 tax return as a result of the hurricane?

a. $9,800
b. $7,900
c. $9,900
d. $7,800

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Related Book For  answer-question

South Western Federal Taxation 2017 Comprehensive

ISBN: 9781305874169

40th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young

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