Calculate the amount and nature of Jonathan gains

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Problem - Jonathan has the following separate casualties during the year:

 

Decrease in Fair Market Value

Adjusted Basis

Insurance Reimbursement

Holding Period

Business furniture

$4,000

$5,000

$0

3 years

Business machinery

15,000

14,000

10,000

3 years

The furniture was completely destroyed while the machinery was partially destroyed. Jonathan also sold business land for a Section 1231 gain of $10,000. Calculate the amount and nature of Jonathan's gains and losses as a result of these casualties.

Reference no: EM132720136

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