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ly All tih8 Ras espired. The timer well continue to run if you leave the test Remaining Time: 6 hours, 41 minutes, 02 seconds. s Question Completion Status: Moving to aother question wil save this response Question 34 1.4 points Save Answer Harri, had ad%,ted gross snoome in 2015 of gas, ooo. Durang the year his perse Pertinent data with respeet to the home tollovs: " income in 2015 of S·25.000. During the year his personal ,ura: bene waa alsest eetpletely destroyed br s Rene by a cyelone. Cost bas Value betore casualzy Value atcer casualty 135,000 147,000 17,000 deduerion for 2015? b ,200 od 9,200 O e 57,000 Mowg to another question all sve this response K Question 34 of 73

Explanation / Answer

Answer is e.) $ 17000.

Casualty loss before insauranc claim = Lower of $ 135000 or $ 130000 ($ 147000- $ 17000) = $ 130000

Casualty loss after insuarnce claim = $ 130000-$113000= $ 17000.

Casualty Losses - A casualty loss can result from the damage, destruction, or loss of your property from any sudden, unexpected, or unusual event such as a flood, hurricane, tornado, fire, earthquake, or volcanic eruption. A casualty does not include normal wear and tear or progressive deterioration.

If your property is personal-use property or is not completely destroyed, the amount of your casualty loss is the lesser of:

If your property is business or income-producing property, such as rental property, and is completely destroyed, then the amount of your loss is your adjusted basis.

Insurance or Other Reimbursements

You must reduce the loss, whether it is a casualty or theft loss, by any salvage value and by any insurance or other reimbursement you receive or expect to receive. The adjusted basis of your property is usually your cost, increased or decreased by certain events such as improvements or depreciation.

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