Eric and Samantha, joint filers, had AGI of $90,000 and will itemize for the year. They endured the following unfortunate events: • Samantha discovered her antique brooch had been stolen. She paid $6,000 for the brooch, and it was not covered by insurance. • As a result of a short in their electrical grid, they lost their vacation home to fire. They had replacement-value insurance aon the home. They paid $285,000 for the home last year, and received insurance proceeds of $290,000. They completely lost a car in a flood that was a federally declared disaster. According to Kelly Blue Book, the value of the car before the disaster was $24,000. They originally paid $35,000 for the car and received $15,000 from the insurance company. • In the same flood, they completely lost an ATV. They paid $32,000 for the ATV, and it had a replacement cost of $37,000. They had owned the ATV for 3 years, and they received $20,000 from the insurance company. What is their casualty loss deduction?
Eric and Samantha, joint filers, had AGI of $90,000 and will itemize for the year. They endured the following unfortunate events: • Samantha discovered her antique brooch had been stolen. She paid $6,000 for the brooch, and it was not covered by insurance. • As a result of a short in their electrical grid, they lost their vacation home to fire. They had replacement-value insurance aon the home. They paid $285,000 for the home last year, and received insurance proceeds of $290,000. They completely lost a car in a flood that was a federally declared disaster. According to Kelly Blue Book, the value of the car before the disaster was $24,000. They originally paid $35,000 for the car and received $15,000 from the insurance company. • In the same flood, they completely lost an ATV. They paid $32,000 for the ATV, and it had a replacement cost of $37,000. They had owned the ATV for 3 years, and they received $20,000 from the insurance company. What is their casualty loss deduction?
Chapter7: Losses—deductions And Limitations
Section: Chapter Questions
Problem 66P
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2021 tax year
Transcribed Image Text:Eric and Samantha, joint filers, had AGI of $90,000 and will itemize for the year. They endured the following unfortunate events:
• Samantha discovered her antique brooch had been stolen. She paid $6,000 for the brooch, and it was not covered by
insurance.
• As a result of a short in their electrical grid, they lost their vacation home to fire. They had replacement-value insurance on the
home. They paid $285,000 for the home last year, and recelved insurance proceeds of $290,000.
They completely lost a car in a flood that was a federally declared disaster. According to Kelly Blue Book, the value of the car
before the disaster was $24,000. They originally paid $35,000 for the car and received $15,000 from the insurance company.
• In the same flood, they completely lost an ATv. They paid $32,000 for the ATV, and it had a replacement cost of $37,000. They
had owned the ATV for 3 years, and they received $20,000 from the insurance company.
What is their casualty loss deduction?
$6,600
$5,700
O 55,800
$6,500
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