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Question: Tim suffered greatly this year. In January a freak storm damaged his sailboat and in July Tim's motorcycle was stolen from his vacation home. Tim originally paid $31,200 for the boat, but he was able to repair the damage for $8,900. Tim paid $16,300 for the motorcycle, but it was worth $18,000 before it was stolen. Insurance reimbursed $1,140 for the boat repairs and the cycle was uninsured.
a. Calculate Tim's deductible casualty loss if his AGI is $42,500.
b. Calculate Tim's deductible casualty loss if his AGI is $141,500.
c. How would you answer a. if Tim received an additional $57,325 in interest from municipal bonds this year?
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