Jane had AGI of $70,000 in 2020. During the year, her personal winter cabin was damaged by a fire. Pertinent data with respect to the cabin follows:   Cost basis $300,000   Value before the fire 450,000   Value after the fire 125,000   Insurance recovery 350,000   What is Jane's itemized casualty loss deduction?

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter15: Property Transactions: Nontaxable Exchanges
Section: Chapter Questions
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Jane had AGI of $70,000 in 2020. During the year, her personal winter cabin was damaged by a fire. Pertinent data with respect to the cabin follows:

 

Cost basis $300,000

 

Value before the fire 450,000

 

Value after the fire 125,000

 

Insurance recovery 350,000

 

What is Jane's itemized casualty loss deduction?

 

B)

 

Hannan lives and works in Pittsburgh. He travels to Montecito for eight days. If six days are spent on business and two days are spent on sightseeing and visiting relatives, only 75% of the airfare is deductible.

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