cesReynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2022, which wasdeclared a Federally Designated Disaster Area. The flood damage ruined the furniture that was stored in their garage. The followingitems were completely destroyed and not salvageable:Damaged ItemsAntique poster bedPool tableLarge flat-screen TVFMV JustPrior toDamage$ 8,6008,6251,350Casualty loss deductionOriginalItem Cost(Basis)$ 6,30014,5754,775Required:Their homeowner's insurance policy had a $11,755 deductible for the personal property, which was deducted from their insurancereimbursement of $16,275, resulting in a net payment of $4,520. Their AGI for 2022 was $47,000. What is the amount of casualty lossthat Reynaldo and Sonya can claim on their joint return for 2022?

A casualty loss deduction is a tax benefit that allows individuals to reduce their taxable income…

Answered: Reynaldo and Sonya, a married couple,…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 66P

See similar textbooks

Similar questions

Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2021, which was declared a Federally Designated Disaster Area. The flood damage ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable: Damaged Items Antique poster bed Pool table Large flat-screen TV FMV Just Prior to Damage $ 7,000 7,625 950 Casualty loss deduction Original Item Cost (Basis) $ 5,500 12,375 3,375 Required: Their homeowner's insurance policy had a $10,675 deductible for the personal property, which was deducted from their insurance reimbursement of $14,075, resulting in a net payment of $3,400. Their AGI for 2021 was $39,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2021?
Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2021, which was declared a Federally Designated Disaster Area. The flood damage ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable: Damaged Items Antique poster bed Pool table Large flat-screen TV FMV Just Prior Original Item Cost (Basis) $ 6,100 14,025 4,425 Casualty loss deduction to Damage $ 8,200 8,375 1,250 Required: Their homeowner's insurance policy had a $11,485 deductible for the personal property, which was deducted from their insurance reimbursement of $15,725, resulting in a net payment of $4,240. Their AGI for 2021 was $45,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2021?
Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2019, which was declared a Federally Designated Disaster Area. The flood damage ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable: Damaged Items FMV Just Prior to Damage Original Item Cost (Basis) Antique poster bed $ 6,000 $ 5,000 Pool table 7,000 11,000 Flat-screen TV 700 2,500 Required: Their homeowner's insurance policy had a $10,000 deductible for the personal property, which was deducted from their insurance reimbursement of $12,700, resulting in a net payment of $2,700. Their AGI for 2019 was $50,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2019?
Carmen Viers lost everything to a fire and has spent the last eight weeks living in a motel room at a cost of $4 comma 7414,741. Her dwelling, which was destroyed as a result of a lightning strike, was insured with an HO-2 policy for $208 comma 336208,336. Prior to the loss, her home was valued at $255 comma 000255,000, her detached garage and poolhouse were valued at $29 comma 48629,486, and her personal property had an actual cash value of $85 comma 12185,121. To make matters worse she sustained $10,000 in injuries while trying without success to save her three Greyhound dogs valued at $6,000 each. How much of her total losses and expenses will be reimbursed if she has a $1,000 deductible? Question content area bottom Part 1 The amount of total losses and expenses she will be reimbursed if she has a $1,000 deductible is
] In January, a flood which was declared a federal disaster, damaged Danny’s carpeting and furniture. In March, his golf cart was damaged in an accident when it was hit by a car. He was able to establish the following information to determine his losses on these assets. Asset FMV before casualty FMV after casualty Insurance recovery Cost Date purchased Carpet $5,600 $1,100 $2,000 $6,000 10 months ago Furniture 5,500 1,500 3,200 3,000 11 years ago Golf Cart 6,500 2,000 1,500 7,000 8 months ago Danny’s AGI is $32,000 before considering these casualties and he has $12,000 of other itemized deductions. Determine Danny’s deductible casualty loss for 2019.
Casualty Losses. Tony is a carpenter who owns his own furniture manufacturing business. During the current year, a tornado (a federally declared disaster) damaged several pieces of equipment and destroyed his delivery truck and his personal automobile, which he often kept in the workshop garage. The asset descriptions and related values are as follows: Adjusted Insurance Basis FMV FMV Cost to Before Casualty After Casualty Repair/Replace $ 8,700 9,000 13,800 32,000 12,000 Asset Proceeds $ 9,000 3,000 15,300 17,500 28,000 $ 3,700 7,800 11,400 16,000 12,000 $4,000 Equipment A Equipment B Equipment C Delivery Truck Automobile $12,300 8,100 Not Available Not Available 18,000 15,000 Although he could not obtain its fair market value after the casualties, Tony decided to repair rather than replace Equipment C. Before considering any deductions because of these casualties, Tony's AGI is $80,000. What deductions may Tony take relating to these losses?
A fire destroys M’s computer That has a replacement value $3,500 and Actual cash value of $2000. Under which of the following homeowner policy , the insurer will pay for maximum of $0 $2,000 $2,500 $3,500
Ivy Gordon's home in Charleston was recently gutted in a fire. Her living and dining rooms were destroyed completely, and the damaged personal property had a replacement price of $36,000. The average age of the damaged personal property was 5 years, and its useful life was estimated to be 13 years. What is the maximum amount the insurance company would pay Ivy, assuming that it reimburses losses on an actual cash-value basis and has a $500 deductible? Assume that the total coverage requirement is met. Do not round intermediate calculations. Round the answer to the nearest cent.
Jorge and his wife own a beachfront vacation home in Savannah, Georgia. During the year, high winds from a tropical storm shatter a sliding glass door and rain from the storm causes extensive water damage to the kitchen. The Savannah area qualified for federal disaster relief. Fortunately, during a calm in the storm, Jorge is able to board up the door, which limits the water damage to the kitchen. The items damaged in the storm are: Cost ValueBefore ValueAfter InsuranceProceeds Kitchen furniture $2,085 $1,325 $430 $510 TV 265 200 0 115 Refrigerator 1,000 920 90 775 Linoleum flooring 1,645 880 0 470 In addition, Jorge pays $610 to replace the sliding glass door. The insurance company will not reimburse him for the cost of the new door because the old sliding glass door did not meet the company's standards for a hurricane area. The amount of Jorge's casualty loss before considering any annual limitations that may apply is…
Derrick owns a farm in eastern North Carolina. A hurricane hit the area (a national disaster area was declared) and destroyed a farm building and some farm equipment and damaged a barn. Item Adjusted Basis FMV before Damage FMV after Damage Insurance Proceeds Building $ 119,100 $ 163,500 $ 0 $ 74,700 Equipment 90,600 66,800 0 17,100 Barn 133,300 212,500 133,300 57,700 Due to the extensive damage throughout the area, the president of the United States declared all areas affected by the hurricane as a disaster area. Derrick, who files a joint return with his wife, had $46,800 of taxable income last year. Their taxable income for the current year is $155,400, excluding the loss from the hurricane. Required: a-1. Calculate the amount of the loss deductible by Derrick and his wife.a-2. What amount of loss should be adjusted against current and last year?
Derrick owns a farm in eastern North Carolina. A hurricane hit the area (a national disaster area was declared) and destroyed a farm building and some farm equipment and damaged a barn. Item Building Equipment Barn Adjusted Basis FMV before Damage FMV after Damage $ 108,900 76,500 103,500 a-1. Loss amount a-2. Last year a-2. Current year $ 148,200 57,000 165, 100 $ $0 0 Due to the extensive damage throughout the area, the president of the United States declared all areas affected by the hurricane as a disaster area. Derrick, who files a joint return with his wife, had $69,600 of taxable income last year. Their taxable income for the current year is $223,800, excluding the loss from the hurricane. 103,500 Required: a-1. Calculate the amount of the loss deductible by Derrick and his wife. a-2. What amount of loss should be adjusted against current and last year? 69,600 Insurance Proceeds $ 69,600 15,500 43,500
Alicia's automobile destroyed in a tornado on 5/4/2021. This did not occur in a Federally declared disaster area. Her car was used 70% for business and 30% for personal use. The car had originally cost $40,000. At the time of the accident, the car was worth $20,000 and Alicia had taken $8,000 of depreciation. The car was totally destroyed and Alicia had let her car insurance expire. If her AGI is $50,000 (before considering the loss), determine her AGI and itemized deduction for the casualty loss. $34,000;$-0- $30,000;$-0- $26,000;$5,700 None of these $34,000;$4,500

SEE MORE QUESTIONS

Recommended textbooks for you

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

Personal Finance

Finance

ISBN:

9781337669214

Author:

GARMAN

Publisher:

Cengage

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

Personal Finance

Finance

ISBN:

9781337669214

Author:

GARMAN

Publisher:

Cengage

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

Individual Income Taxes

Accounting

ISBN:

9780357109731

Author:

Hoffman

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

SEE MORE TEXTBOOKS