Reynaldo and Sonya, a married couple, had flood damage in their home due to a...
50.1K
Verified Solution
Link Copied!
Question
Accounting
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
FMV Just Prior to Damage
Original Item Cost (Basis)
Antique poster bed
$ 8,600
$ 6,300
Pool table
8,625
14,575
Large flat-screen TV
1,350
4,775
Required:
Their homeowner's insurance policy had a $11,755 deductible for the personal property, which was deducted from their insurance reimbursement of $16,275, resulting in a net payment of $4,520. Their AGI for 2021 was $47,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2021?
Casuality loss deduction _____
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
