Determine the net deductible casualty gain or loss for Liz’s when her Adjusted G

Question

Determine the net deductible casualty gain or loss for Liz’s when her Adjusted Gross Income was $43,800 in 2017 before the following occurred:

Asset      

Adj. Basis      

FMV Before       

FMV After

Insurance

Reimbursement

X

$1,200         

2000

500

450

Y

14000

10000

1,700              

1100

Z

650

3000

1,700              

585

X and Y were destroyed in the same casualty in May. Z was destroyed in a separate casualty in November.

All casualties were nonbusiness, personal-use property and none occurred in a federally declared disaster area.

What is the amount of the net deductible casualty gain or loss that should be reported on Liz’s Schedule A, line 20?

Asset      

Adj. Basis      

FMV Before       

FMV After

Insurance

Reimbursement

X

$1,200         

2000

500

450

Y

14000

10000

1,700              

1100

Z

650

3000

1,700              

585

Explanation / Answer

Computation of net Casuality Loss Deductible Reported Detail Amount Remark Loss on Asset X ($1200-($500+$450) $250.00 Loss Loss on Asset Y($14000-($1700+$1100) $11,200.00 Loss Loss on Asset Z ($650-($1700+$585) -$1,635.00 Gain Net Casuality Loss Deductible Reported $9,815.00

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