Danny’s living room furniture and his flat screen television were damaged in a fire in his home in January. In March, his golf cart was damaged in a flood. He was able to establish the following information to determine his losses on these assets.

Danny’s AGI is $37,000 before considering these casualties and he has $12,000 of other itemized deductions.
a. Determine Danny’s deductible casualty loss if the events occurred in 2017.
b. How would your answer change if these events happened in 2018?

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FMV before FMV after Insurance Date purchased Asset Cost casualty casualty recovery Television 10 months ago 11 years ago 8 months ago $5,000 3,000 Golf Cart 6,500 2,000 1,500 7,000 $4,600 $1,100 $2,000 Furniture 5,500 1,500 3,200