b. Calculate Tim\'s deductible casualty loss if his AGI is $143,000 c. How would
ID: 2339174 • Letter: B
Question
b. Calculate Tim's deductible casualty loss if his AGI is $143,000
c. How would you answer a. if Tim received an additional $62,050 in interest from municipal bonds this year?
Required information The following information applies to the questions displayed below. Tim suffered greatly this year. In January a freak storm damaged his sailboat and in July Tim's motorcycle was stolen from his vacation home. Tim originally paid $27,250 for the boat, but he was able to repair the damage for $7,600. Tim paid $16,550 for the motorcycle, but it was worth $19,050 before it was stolen. Insurance reimbursed $1,920 for the boat repairs and the cycle was uninsured. a. Calculate Tim's deductible casualty loss if his AGI is $44,000.Explanation / Answer
Casualty and theft losses are limited to a $100 threshold per loss event and an overall threshold of 10 percent of your adjusted gross income. They do not include any property that is covered by insurance if the insurance company reimburses you for the loss.
Tim's deductible casualty loss if his AGI is $143,000
Tim received an additional $62,050 in interest from municipal bonds this year
AGI $44000+62050=106050
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.