Question

Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2019, 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 Antique poster bed Pool table Flat-screen TV FMV Just Prior to Damage $6,000 7,000 700 Original Item Cost (Basis) $ 5,000 11,000 2,500 Required: Their homeowner's insurance policy had a $10,000 deductible for the personal property, which was deducted from their insurance reimbursement of $12,700, resulting in a net payment of $2,700. Their AGI for 2019 was $50,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2019? Casualty loss deduction

Answer 1

Pago The follending calculations apply oplythen the $ 100 l Lotto per event on damaged personal property. (this Os Conserdered one event) and the 10% AGI Threshold. lo Adjusted basic Cast $185.00 2. FMV before Event - $13700 3. FMU After Event --$0 4. Decrease in FMV [ Line 2 -Bre 3} -$13,700 5 Loss ( Smalley o Boe-lcoolice.4) 3&13700 6. Substract insurance 7. Loss alter Refomborcement $11,000 8- Total Loss : $14,000 9. Substract $100 - $100 10 Loss after $100 tule $10,000