Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2020, 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: FMV Just Prior to Original Item Cost (Basis) $ 6,000 Damage $ 8,000 8,250 1,200 Damaged Items Antique poster bed Pool table Flat-screen TV 13,750 4,250 Required: Their homeowner's insurance policy had a $11,350 deductible for the personal property, which was deducted from their insurance reimbursement of $15,450, resulting in a net payment of $4,100. Their AGI for 2020 was $44,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2020? Casualty loss deduction
Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2020, 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: FMV Just Prior to Original Item Cost (Basis) $ 6,000 Damage $ 8,000 8,250 1,200 Damaged Items Antique poster bed Pool table Flat-screen TV 13,750 4,250 Required: Their homeowner's insurance policy had a $11,350 deductible for the personal property, which was deducted from their insurance reimbursement of $15,450, resulting in a net payment of $4,100. Their AGI for 2020 was $44,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2020? Casualty loss deduction
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter10: Protecting Your Property
Section: Chapter Questions
Problem 4FPE
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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 2020, 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:
FMV Just
Original Item
Cost (Basis)
$ 6,000
13,750
4,250
Prior to
Damage
$ 8,000
8,250
Damaged Items
Antique poster bed
Pool table
Flat-screen TV
1,200
Required:
Their homeovwner's insurance policy had a $11,350 deductible for the personal property, which was deducted from their insurance
reimbursement of $15,450, resulting in a net payment of $4,100. Their AGI for 2020 was $44,000. What is the amount of casualty loss
that Reynaldo and Sonya can claim on their joint return for 2020?
Casualty loss deduction](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcb32980d-db8d-425b-8cc4-b0ab6d78008f%2F9fb973ad-220b-4d46-8c47-7be43ed7e552%2Fy69cwyp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2020, 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:
FMV Just
Original Item
Cost (Basis)
$ 6,000
13,750
4,250
Prior to
Damage
$ 8,000
8,250
Damaged Items
Antique poster bed
Pool table
Flat-screen TV
1,200
Required:
Their homeovwner's insurance policy had a $11,350 deductible for the personal property, which was deducted from their insurance
reimbursement of $15,450, resulting in a net payment of $4,100. Their AGI for 2020 was $44,000. What is the amount of casualty loss
that Reynaldo and Sonya can claim on their joint return for 2020?
Casualty loss deduction
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