posted by Lourane on .
In 2011, the Chens' pleasure boat was severely damaged by a hurricane in an area that was declared a federal disaster area. they had AGI of $110,000 in 2011. The following information relates to the craft:
Cost basis $95,000
FMV before casualty 145,000
FMV after casualty 25,000
The Chens had insurance and received an
$80,000 insurance settlement. What is the allowable casualty loss deduction for the chens in 2011?