Tommy's homeowners policy had an $50,000 deductible clause for thefts. How much is Tommy's theft loss --prior to "floors" or "ceilings" based on AGI--for 2020? a. $50,000 b. $32,000 c. $40,000 d. None of these
Tommy's homeowners policy had an $50,000 deductible clause for thefts. How much is Tommy's theft loss --prior to "floors" or "ceilings" based on AGI--for 2020? a. $50,000 b. $32,000 c. $40,000 d. None of these
Chapter15: Property Transactions: Nontaxable Exchanges
Section: Chapter Questions
Problem 55P
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Transcribed Image Text:During 2020, Tommy's home was burglarized. The home was in a Presidentially declared
disaster area. Tommy had the following items stolen.
-A block of securities worth $20,000. Tommy purchased the securities three years ago for
$16,000.
-A block of securities worth $30,000. Tommy purchased the securities for $24,000 two years
ago.
Tommy's homeowners policy had an $50,000 deductible clause for thefts. How much is
Tommy's theft loss --prior to "floors" or "ceilings" based on AGI--for 2020?
a. $50,000
b. $32,000
c. $40,000
d. None of these
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