Ben crashed his new car in 2020 while doing donuts in the high school parking lot. It was a complete loss. The fair value of the car was $18,000. He did not have insurance. His AGI is $10,000. What is the amount of his casualty loss in 2020? A.$0 B.$17,000 C.$17,900 D.$18,000

Ben crashed his new car in 2020 while doing donuts in the high school parking lot. It was a complete loss. The fair value of the car was $18,000. He did not have insurance. His AGI is $10,000. What is the amount of his casualty loss in 2020? A.$0 B.$17,000 C.$17,900 D.$18,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 24CE

See similar textbooks

Related questions

Q: Jessica’s office building is destroyed by fire on November 15, 2020. The adjusted basis of the…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Cavan Biggio sold his condo in Victoria in 2020 for a capital gain of $557,000. He originally…

A: When the capital asset is sold above its carrying value, the gain incurred on such a…

Q: Jane had AGI of $70,000 in 2020. During the year, her personal winter cabin was damaged by a fire.…

A: Since you have posted two questions we will do the first one for you. To get the other question done…

Q: Jim had a car accident in 2019 in which his car was completely destroyed. At the time of the…

A: Formula: Deductible loss = Car value - ( car value x insurance recovery ) Car value and insurance…

Q: Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in…

A: AGI is, adjusted gross income of the business or individual which is used for calculation of taxable…

Q: 0 in 2013. His purchase has depreciated 6.5% every year since then. What is his car worth today in…

Q: Mr. Ali purchased a fire insurance policy with a Sum Assured RO. 10,000. The value of his house is…

A: As per the Insurance policy, the insuree is insured to a sum of a maximum of RO 10,000 for the loss.…

Q: Kyle purchased a car for $12,300 on March 2, 2019. He uses the car 35% for business use and 65% for…

A: Depreciation- It is the gradual decline in the book value of a fixed asset due to various reasons…

Q: Jed, age 55, is married with no children. During 2019, Jed had the following income and expense…

A: All amounts are in dollar ($).

Q: Jenny's personal car was totally destroyed in a hurricane in 2021, the area was declared a Federal…

A: Actually Paid amount: $15,000 AGI: $50,000 We need to compute the value of income which should be…

Q: Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in…

A: Adjusted gross income (AGI) refers to gross income less the relevant adjustments to gross income.

Q: David Davis died in 2019 and left an estate valued at $13,900,000 after the payment of his debts.…

A: Given : David Davis died in 2019 and left an estate valued at $13,900,000 after the payment of his…

Q: Bob died in 2020. He left an estate worth $20,000,000, a surviving spouse, and a two trust will…

A: CST termed as Credit Shelter Trust which is made to allow the affluent couples for decreasing or…

Q: gain or loss i

A: Gain or loss refers to the amount that a person earns from the sale of an item more than the…

Q: When Carolina's house burned down, she lost household items worth a total of $55,000. Her house was…

A: In the case of insurance, the amount receivable on loss is lower of the actual loss and maximum…

Q: Sam Shoeman, a calendar year taxpayer, purchased stock in Eaton Corporation on July 12, 2020, for…

A: A short-term loss is a shortfall acknowledged from the sale of individual or venture property that…

Q: During 2019, Janet lost her house due to a national disaster. Janet bought the house in 2000 for…

A: If the property is a business or income-generating asset and if it is completely destroyed, then the…

Q: Tina disposed of a painting on 1 July 2020 for $500,000 which she had bought in February 2008 for…

A: Capital Gains are gains arising from sale asset when proceeds from such sale are compared with the…

Q: Michael (single) purchased his home on July 1, 2011. He lived in the home as his principal residence…

A: A Taxpayer is required to include Capital Gain in his income. However A deduction of 250,000 is…

Q: In April 2019, Mario purchased a new refrigerator for $700 and placed it in service in his rental…

A: Section 1245 assets: Comprises personal property used in trade or business and held for over 12…

Q: Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their…

A: Damaged items FMV just prior to damage (a) Original item cost (basis) (b) Actual loss (Lesser of a…

Q: Mr. Chan decided to rent out one of his properties, and spent $200,000 to renovate the property in…

A: A property owner can claim a tax deduction on some or all of the property taxes paid if they use the…

Q: William purchased a universal life policy on his own life. When his son Ben turned 25, William…

A: if we take a loan against life insurance policy then no amount is taxable because policy remain in…

Q: Vlad died on October 20, 2018. During his lifetime, upon knowing that he had Stage 4 cancer, sold…

A: Given Information: Sales value of Lamborghini car - P4,000,000 Fair market value at the time of…

Q: James and his wife, Carla sell their personal residence which they have occupied for three years on…

Q: What amount, if any, does Bob’s estate exceed the $11,000,000 exclusion amount?

A: Federal gift tax can be defined as the amount of tax to be paid by the transferor of the property to…

Q: Callie Cooper purchased two pieces of property in 1990: Property Q cost $15,000 and Property R cost…

A: Given data, Property Q cost = $15,000 Property R cost = $30,000 Property Q had appreciated in value…

Q: Mary owns a home with a with a replacement value of $331,195. She purchased home insurance in the…

A: According to the "80% rule of home insurance", the replacement value of the house should be insured…

Q: Zachary Lee has a personal automobile policy (PAP) with coverage of $25,000/$50,000 for bodily…

A: Bodily injury liability is a liability that occurs when you are at fault in a car accident, medical…

Q: A hurricane (in a federally declared disaster are) destroys Kirk’s boat in 2020. The boat is worth…

A: The federally declared disaster is consider as the events that is incurred unexpectedly and…

Q: Carolina's house burned and she lost household items worth a total of $50,000. House insured for…

A: Calculation of Amount of Insurance for Personal Belongings:The amount of insurance for personal…

Q: Charlotte was injured in a vehicular accident in 2022. He incurred and paid medical expenses of…

A: Taxable income is that what is available after paying all expenses because there are no taxes on…

Q: A taxpayer engaged in manufacturing operations bought a machine with a salvage value of P50,000 and…

A: Hi student Since there are multiple questions, we will answer only one question. First question can…

Q: Jes had a personal casualty loss in 20X1 due to a hurricane damaging his home. The area where his…

Q: Eric and Susan just purchased their first home, which cost $146,000. They purchased a homeowner's…

A: given data the cost of home = $146,000 home insurance = $136,000 if anything happens the claim will…

Q: The nephew of a well-known artist gave a costly artwork to an individual taxpayer. After two years,…

A: Answer Given is that The nephew of a well-known artist gave a costly artwork to an individual…

Q: john's mother passed away during 2019. She received $200,000 in life insurance proceeds. Because she…

A: Taxable income is defined as the portion of the gross income on which an individual owes tax in a…

Q: Sam died on January 15, 2011 and left his wife, Terry, an insurance policy with a face value of…

A: Point of Taxation: In the event of demise of the insured, the beneficiary receives proceeds from the…

Q: Alicia's automobile destroyed in a tornado on 5/4/2021. This did not occur in a Federally declared…

A: Introduction: AGI Accounting is dedicated to providing our clients with the most accurate and…

Q: Val died on May 13, 2021. On July 3, 2018, she gave a $400,000 lite insurance policy on her own lite…

A: a. The amount of life insurance proceeds shall be included in the deceased gross estate if the…

Q: Marika Katz bought a new Blazer and has insurance coverage of 25/50/25 with $200 deductible for…

A: Insurance policy 25/50/25:- This is an insurance that has the policy where one person injury limit…

Q: a decedent died on nov. 1,2020 leaving a family home composed of the following: conjugal house worth…

A: deductible amount of family home: conjugal house worth = P 8,000,000 allowed deduction on conjugal…

Q: Belinda was involved in a boating accident in 2021. Her speedboat, which was used only for personal…

A: Introduction: When it comes to taxes, your adjusted gross income is just your total income less any…

Q: Calvin James and his wife, Carla sell their personal residence which they have occupied for three…

A: (A) REALISED GAIN FROM SALE OF CALVIN JAMES AND HIS WIFE CARLA RESIDENCE : S.NO PARTICULARS…

Question

plz solve it within 30-40 mins I'll give you multiple upvote

Ben crashed his new car in 2020 while doing
donuts in the high school parking lot. It was a
complete loss. The fair value of the car was
$18,000. He did not have insurance. His AGI is
$10,000. What is the amount of his casualty loss in
2020?
A.$O
B.$17,000
C.$17,900
D.$18,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 General Information

VIEW

Step 2 Final Answer and calculation

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Oscar owns a building that is destroyed in a hurricane. His adjusted basis in the building before the hurricane is $130,000. His insurance company pays him $140,000 and he immediately invests in a new building at a cost of $142,000. What is the amount of recognized gain or loss on the destruction of Oscar's building? $0 $10,000 gain $8,000 gain $12,000 gain $2,000 loss
Chad owned an office building that was destroyed in a tornado. The area was declared a Federal disaster area. The adjusted basis of the building at the time was 890,000. After the deductible, Chad received an insurance check for 850,000. He used the 850,000 to purchase a new building that same year. How much is Chads recognized loss, and what is his basis in the new building?
On July 24 of the current year, Sam Smith was involved in an accident with his business use automobile. Sam had purchased the car for 30,000. The automobile had a fair market value of 20,000 before the accident and 8,000 immediately after the accident. Sam has taken 20,000 of depreciation on the car. The car is insured for the fair market value of any loss. Because of Sams history, he is afraid that if he submits a claim, his policy will be canceled. Therefore, he is considering not filing a claim. Sam believes that the tax loss deduction will help mitigate the loss of the insurance reimbursement. Sams current marginal tax rate is 35%. Write a letter to Sam that contains your advice with respect to the tax and cash flow consequences of filing versus not filing a claim for the insurance reimbursement for the damage to his car. Also prepare a memo for the tax files. Sams address is 450 Colonels Way, Warrensburg, MO 64093.
Jed, age 55, is married with no children. During 2019, Jed had the following income and expense items: a. Three years ago, Jed loaned a friend 10,000 to help him purchase a new car. In June of the current year, Jed learned that his friend had been declared bankrupt and had left the country. There is no possibility that Jed will ever collect any of the 10,000. b. In April of last year, Jed purchased some stock for 5,000. In March of the current year, the company was declared bankrupt, and Jed was notified that his shares of stock were worthless. c. Several years ago Jed purchased some 1244 stock for 120,000, This year he sold the stock for 30,000. d. In July of this year, Jed sold some land that he had held for two years for 60,000. He had originally paid 42,000 for the land. e. Jed received 40,000 of interest income from State of Minnesota bonds. f. In September, Jeds home was damaged by an earthquake; Jeds county was declared a Federal disaster area by the President. Jeds basis in his home was 430,000. The value of the home immediately before the quake was 610,000. After the quake, the home was worth 540,000. Because earthquake damage was an exclusion on Jeds homeowners insurance policy, he received no insurance recovery. g. Jed received a salary of 80,000. h. Jed paid home mortgage interest of 14,000. i. If Jed files a joint return for 2019, determine his NOL. for the year.