Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2021, which was declared a Federally Designated Disaster Area. The flood damage ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable: Damaged Items Antique poster bed Pool table Large flat-screen TV TMV Just Prior to Danage $7,000 Casualty loss deduction 7,625 950 Original Item Cost (Basis) $5,500 12,375 3,375 Required: Their homeowner's insurance policy had a $10,675 deductible for the personal property, which was deducted from their insurance reimbursement of $14,075, resulting in a net payment of $3,400. Their AGI for 2021 was $39,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2021?
Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2021, which was declared a Federally Designated Disaster Area. The flood damage ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable: Damaged Items Antique poster bed Pool table Large flat-screen TV TMV Just Prior to Danage $7,000 Casualty loss deduction 7,625 950 Original Item Cost (Basis) $5,500 12,375 3,375 Required: Their homeowner's insurance policy had a $10,675 deductible for the personal property, which was deducted from their insurance reimbursement of $14,075, resulting in a net payment of $3,400. Their AGI for 2021 was $39,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2021, which was declared a Federally Designated Disaster Area. The flood damage ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable: Damaged Items Antique poster bed Pool table Large flat-screen TV FMV Just Prior to Damage $ 7,000 7,625 950 Casualty loss deduction Original Item Cost (Basis) $ 5,500 12,375 3,375 Required: Their homeowner's insurance policy had a $10,675 deductible for the personal property, which was deducted from their insurance reimbursement of $14,075, resulting in a net payment of $3,400. Their AGI for 2021 was $39,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2021?
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