In July 2020, a tornado demolished Emma's home in a federally declared disaster. The home was valued at $750,000 before the tornado. After the tornado, the home was worth $40,000. Emma's adjusted basis in the home was $400,000 and she received insurance reimbursement for her loss of $300,000. In 2020, Emma's AGI was $600,000. In 2019, the year before the casualty, her AGI was $450,000. To maximize her deduction, in which year should Emma claim a personal casualty loss deduction for the home and what is the amount of the deduction?
Hi
Let me know in case you face any issue:
Get Answers For Free
Most questions answered within 1 hours.