Solution-Compute the taxpayer casualty loss deduction

Compute the taxpayer casualty loss deduction

Reference no: EM132462306

Problem - Business property is damaged in a fire. The property was worth $25,000 before the casualty and worth $15,000 after the casualty. The taxpayer's adjusted basis in the property was $7,000. The insurance company reimbursed the taxpayer $2,000 for its loss. Compute the taxpayer's casualty loss deduction for the property?

A. $3,000.

B. $5,000.

C. $7,900.

D. $4,900.

E. $8,000.

Reference no: EM132462306

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Compute the taxpayer casualty loss deduction

Reference no: EM132462306

Reference no: EM132462306

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