A hurricane completely destroyed duplex the current year

Reference no: EM13519988

Julie, who is single, has the following items for 2012:
Salary=$100,000
A hurricane completely destroyed her duplex the current year. Julie lived in one-half of the duplex and rented out the other half. Julie paid $400,000 for the duplex and has taken $80,000 of cost recovery on the rental portion of the duplex. The duplex was worth $420,000 at the time of the destruction. Julie's insurance policy paid her 90% of the fair market value of the duplex.
Household items destroyed in the hurricane had a basis of $15,000 and a fair market value of $ 8,500. There was no insurance recovery on the household items.
Julie purchased a painting three years ago for $4000. At the time of the hurricane, the painting was worth $10,000. Julie purchased the painting as an investment with the intent that she would sell it when its value exceeded $12,000. There was no insurance recovery on the painting.
Home mortgage interest=$10,000
Determine the amount of Julie's taxable income for 2012.

Reference no: EM13519988

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A hurricane completely destroyed duplex the current year : A hurricane completely destroyed her duplex the current year. Julie lived in one-half of the duplex and rented out the other half. Julie paid $400,000 for the duplex and has taken $80,000 of cost recovery on the rental portion of the duplex. Th..

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