During the year, Greta's mountain cabin was almost completely destroyed by a fire started in the...

Question

Question

During the year, Greta's mountain cabin was almost completely destroyed by a fire started in the...

During the year, Greta's mountain cabin was almost completely destroyed by a fire started in the kitchen. She had adjusted gross income of $110,000 in 2018 and related data with respect to the cabin follows:


Cost basis:	$	121,000
Value before casualty:	$	155,000
Value after casualty:	$	15,000

Greta was partially insured for the loss and in 2018 she received a $100,000 insurance settlement. What is Greta's allowable casualty loss deduction for 2018?

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

hope you liked my answer and if you do don't forget to give a Thumb's Up.

Add a comment

Answer 2

Similar Homework Help Questions

2019 tax law applies On July 20, 2018, Matt (who files a joint return) purchased 3,000...

2019 tax law applies On July 20, 2018, Matt (who files a joint return) purchased 3,000 shares of Orange Corporation stock (the stock is 244 small business stock) for $24,000. On November 10, 2018, Matt purchased an additional 1,000 shares of Orange Corporation stock from a friend for $150,000. On September 15, 2019, Matt sold the 4,000 shares of stock for $120,000. How should Matt treat the sale of the stock on his 2019 return? a. $54,000 ordinary loss. b....
**For tax year 2018** During the current year, an office desk used by Pat in his...

**For tax year 2018** During the current year, an office desk used by Pat in his business was completely destroyed by a fire. The adjusted basis of the desk was $900 (original cost of $1,500 less accumulated depreciation of $600). Pat received $500 from his insurance company, but he did not replace the desk. a. What is the amount of Pat's recognized gain or loss (deduction) as a result of the casualty? b. Assuming this is Pat's only casualty gain...
1)During 2018, Leisel, a single taxpayer, operates a sole proprietorship in which she materially participates. Her...

1)During 2018, Leisel, a single taxpayer, operates a sole proprietorship in which she materially participates. Her proprietorship generates gross income of $142,000 and deductions of $420,000, resulting is a loss of $278,000. The large deductions are due to the acquisition of equipment and the use of immediate expense and additional first-year depreciation to deduct all of the acquisitions. Can Leisel use all of this loss to offset other income she has? Explain. 2)Heather owns a two-story building. The building is...

Gleim 6 Deductions from AGI [1] Which one of the following expenses does not qualify as...

Gleim 6 Deductions from AGI [1] Which one of the following expenses does not qualify as a deductible medical expense? A. Cost of long-term care for a developmentally disabled person in a relative’s home. B. Special school for a deaf child to learn lip reading. C. Cost of elevator installed for individual who had heart bypass surgery (in excess of increase in value of individual’s home). D. Cost and care of guide dogs used by a blind person in his...

During the year, Greta's mountain cabin was almost completely destroyed by a fire started in the...

Homework Answers

Add Answer to:
During the year, Greta's mountain cabin was almost completely destroyed by a fire started in the...

Post as a guest

Earn Coins

2019 tax law applies On July 20, 2018, Matt (who files a joint return) purchased 3,000...

For tax year 2018 During the current year, an office desk used by Pat in his...

1)During 2018, Leisel, a single taxpayer, operates a sole proprietorship in which she materially participates. Her...

Gleim 6 Deductions from AGI [1] Which one of the following expenses does not qualify as...

During the year, Greta's mountain cabin was almost completely destroyed by a fire started in the...

Homework Answers

Add Answer to: During the year, Greta's mountain cabin was almost completely destroyed by a fire started in the...

Post as a guest

Earn Coins

2019 tax law applies On July 20, 2018, Matt (who files a joint return) purchased 3,000...

**For tax year 2018** During the current year, an office desk used by Pat in his...

1)During 2018, Leisel, a single taxpayer, operates a sole proprietorship in which she materially participates. Her...

Gleim 6 Deductions from AGI [1] Which one of the following expenses does not qualify as...

Add Answer to:
During the year, Greta's mountain cabin was almost completely destroyed by a fire started in the...

For tax year 2018 During the current year, an office desk used by Pat in his...