Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2023, 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 Casualty loss deduction FMV Just Prior to Damage $ 7,600 8,000 1,100 Required: Their homeowner's insurance policy had a $11,080 deductible for the personal property, which was deducted from their insurance reimbursement of $14,900, resulting in a net payment of $3,820. Their AGI for 2023 was $42,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2023? $ 6,200 Original Item Cost (Basis) $5,800 13,200 3,900
Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2023, 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 Casualty loss deduction FMV Just Prior to Damage $ 7,600 8,000 1,100 Required: Their homeowner's insurance policy had a $11,080 deductible for the personal property, which was deducted from their insurance reimbursement of $14,900, resulting in a net payment of $3,820. Their AGI for 2023 was $42,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2023? $ 6,200 Original Item Cost (Basis) $5,800 13,200 3,900
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2023, 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
Casualty loss deduction
FMV Just
Prior to
Damage
$ 7,600
8,000
1,100
Required:
Their homeowner's insurance policy had a $11,080 deductible for the personal property, which was deducted from their insurance
reimbursement of $14,900, resulting in a net payment of $3,820. Their AGI for 2023 was $42,000. What is the amount of casualty loss
that Reynaldo and Sonya can claim on their joint return for 2023?
$ 6,200 X
Original
Item Cost
(Basis)
$ 5,800
13,200
3,900
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