Question

Problem 3-33 (0.1) In the current year, Wilson Enterprises, a calendar year taxpayer suffers a casual loss of $90,000. The casualty was attributable to a Federally dedared disaster. How much of the casualty loss will be deductible by Wilson under the following circumstances? .. Wilson is an individual proprietor and has At of $225.000 The casual loss was a personal loss, and the insurance recovered was $50,000 before any limitations Wilson can dama casualty loss as an itemized deduction of 6. Asume Wilson Corporation, and the insurance recovered was $50,000 before any limitations Wilson can deduct

Answer 1

Answers la) wilson Cau claim a casually loss as an itemised Ledecho Deduction for loss of personal property = Loss amount - 100-110% x Adjusted gross income) =($90,000-$50,000)-800-110% *$225,000) - 40,000-100 - $22500 :Dedeletion for loss of personal property = $17,400 b) corporations are not subject to the $100 floor on the 10% of AGI limitation. Deduction = $90,000-$50,000 .: Dede et = $40,000.