Question

#26) Taxpayer purchased a personal residence on December 29, 2018 for $266,000. The fair market value of the residence was $280,000 when it was damaged by a flood on June 10, 2019 that resulted from not turning off the bath water before leaving for vacation. The fair market value of the residence after the flood was $240,000 and insurance proceeds received in August 2019 totaled $15,000. What is the net amount of casualty loss Taxpayer may deduct for 2019 as an itemized deduction if Taxpayer’s adjusted gross income is $120,000?

Group of answer choices

a-$0

b-$24,900

c-$8,500

d-$12,900

Answer 1

Ansnen As per the given data The fair market value before the a occured was $280000 and it was $240ooo after the flood damage The The insurance was $15000 adjusted gross income CAGID is $120000 As the adjusted gross income exceeds $100000 There is no deduction on 10%. of AG 20 2017, but it changed to Pastial deduction in 2019. - casualty loss & fair market value before damag - after damage - Insurance – AGI *AGI 1000 of its upto 100000 => 280000 - 2400oo- 15000-100 & $25000 - 100 2 $ 24,900. 249.00 Answer will be (6)