4. In 2016 Jerry had 3 non business casualty losses as follows: Asset Basis FMV

Question

4. In 2016 Jerry had 3 non business casualty losses as follows:

Asset     Basis                        FMV Before                            FMV After                                Ins. Recovery

A               $2,300                    $2,000                                      $1,500                                      $420

B               $2,500                    $5,000                                      $2,000                                      0

C               $1,500                    $1,200                                      $100                                          0

Jerry’s AGI for the year was $15,000. How much can Jerry deduct for the casualty losses for the year?

5. A has AGI of $200,000 in 2015 and has medical expenses of $15,000 in 2015. In 2016, A is reimbursed for $7,000 of those expenses by his insurance company. How much of the $7,000 does A have to include in computing its taxable income for 2016?

Explanation / Answer

4. he can deduct casualy losses

A 2300-420-1500= 380

B 2500-2000-0= 500

C 1500-100-0= 1400

Then toal =380+500+1400= 2280

5 This is reimburesemengt of 7000 so its not included in A income.

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