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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 $30,250 for the boat, but he was able to repair the damage for $8,050. Tim paid $15,900 for the motorcycle, but it was worth $17,600 before it was stolen. Insurance reimbursed $1,040 for the boat repairs and the cycle was uninsured.
a. Calculate Tim's deductible casualty loss if his AGI is $48,500.
b. Calculate Tim's deductible casualty loss if his AGI is $147,500.
c. How would you answer a. if Tim received an additional $76,225 in interest from municipal bonds this year?
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