Question

32. [LO 9.3] Danny's living room furniture and his flat screen television were damaged in a fire in his home in January. In March, his golf cart was damaged in a flood. He was able to establish the following information to determine his losses on these assets. Asset FMV before casualty FMV after casualty Insurance recovery Cost Date purchased Television $4,600 $1,100 $2,000 $5,000 10 months ago Furniture 5,500 1,500 3,200 3,000 11 years ago Golf Cart 6,500 2,000 1,500 7,000 8 months ago Danny's AGI is $37,000 before considering these casualties and he has $12,000 of other itemized deductions. a. Determine Danny's deductible casualty loss if the events occurred in 2017. b. How would your answer change if these events happened in 2018?

Answer 1

@ äf in 2017? Asset I FMN Before Casualty EurAfter Casualty . Decrease in | fu Insurance I Love recovery Television ubod 1100 3500 2000 1500 furniture 5500 (500 4000 3200 SOD Golf Cart 6500 2000 4500 500 3000 5300 Total loss: $ loopen los event 200 10855 5100 10% of AG B7000 x 10.) . Deductible casualty $1300 es Ef în 2006, then the personal casualty and theft loss deduction isn't available. except for casualty losses incurred in a federally declared disaster