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Casualty loss: Personal and business

During 2011, someone broke into Jacob’s personal residence and took the following items:
Asset Adjusted Basis FMV before FMV after Insurance Recovery
Business computer $12,000 $10,000 $0 $7,000
Bearer bonds $30,000 $32,000 $0 $0
Silverware $7,000 $10,000 $0 $2,000
Cash $8,000 $8,000 $0 $0
Jacob is an employee and used the computer 100% of the time in his employment. Although his homeowner’s insurance policy paid Jacob $7,000 for the stolen computer,Jacob’s employer did not reimburse Jacob for any of the remainder of his loss. Jacob’s AGI for the year, before considering any of the above items, is $50,000.Determine the total deduction for the stolen items on Jacob’s 2011 tax return.
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Answer #1

Personal used property is deucted by $100 each asset and a 10% AGI agrregator floor

Business computer loss $10,000 -$7,000 = $3,000

Bearer bonds = $25,000- 0 - $100 = $24,900

Silver ware = $20,000 - $18,000 -$100 = $1,900

Total loss = $29,800

Less 10% of AGI(24,900+1,900) = $2,680

Total deduction = $27,120

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