Homework Help: income tax

Posted by Lourane on Thursday, December 13, 2012 at 9:23am.

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?

a. $50,000
b. $15,000
c. $3,900
d. $3,000

No one has answered this question yet.

Answer this Question

Related Questions

tax - In 2011, the Chens' pleasure boat was severely damaged by a hurricane ...
accounting - Ayres Services acquired an asset for $80 million in 2011. The asset...
Tax question. - Joe age 24 single amd not claimed as a dependent. In 2011 his ...
tax - During 2011 Shakira paid following expenses: prescription medicines $525 ...
tax income - Tom and Betsy, who are married filing jointly, reported a standard ...
ACCOUNTING- 2 - HELP HERE IS WHOLE PROBLEM.IT NEEDS TO BE JOURNALIZED PROPERLY. ...
Science - What happens if the nervous system is damaged? You are either ...
tax income - Tom and Betsy, who are married filing jointly, reported a standard ...
Tax - Anyone knows what's the tax rate in Minnesota? I don't know the ...
Fundamentals of Taxation - Tom and Betsy who are married filing jointly, ...

For Further Reading

First Name:
School Subject:
Answer: